Thursday was a rollercoaster for the crypto market, with Bitcoin once again failing to break through a single key resistance level. Despite a promising U.S. inflation report that had everyone squeaking, BTC couldn’t hold its ground.
Instead of soaring, it kept spiraling downward, a pattern we’ve been seeing since early June. Now yesterday, for a fleeting moment, it seemed like Bitcoin bulls might finally get their way. They were eager to push past the descending trendline.
A breakthrough here would’ve been insane, but dreams don’t always come true. Bitcoin’s bullish aspirations were short-lived as the price took a nosedive from the trendline resistance, temporarily plummeting below $57,000 earlier today.
Source: IntoTheBlock
Still though. On-chain data shows that the bulls still have a little more ground than the bears. Analyzing Bitcoin’s token summary, 76% of holders are currently making money at the current price. Netflows are up and institutional investors are still quite active.
The signals summary indicates a mostly bullish sentiment. With zero bearish signals, five neutral, and two bullish, the market sentiment leans towards optimism, though it’s not overwhelmingly positive.
On-chain signals, such as the in the money metric, are neutral at 0.10%, showing that the proportion of profitable transactions isn’t skewed towards either extreme.
Source: IntoTheBlock
Looking at BTC’s trading chart, it’s clear that the bulls are struggling. Price is currently trading below the Ichimoku Cloud, which is a bearish signal. The span lines place immediate resistance levels around the $58,689 to $62,737 range.
Bitcoin’s price is also well below both the 50-day and 200-day moving averages with a death cross that gives the bears another win. The RSI at 36.89 means that even though BTC is in bearish territory, it is not yet oversold.
Source: TradingView
The MACD line remains below the signal line, with both in negative territory. Given the current technical setup, Bitcoin is likely to face continued resistance at the $57,000 to $58,000 range.
If the price fails to maintain support at the $56,983 level, we could see further declines toward the $53,000 support level. However, a sustained move above the $58,689 resistance will invalidate the bearish outlook and trigger a bullish reversal.