Bitcoin Faces Critical Support Zone as Retail Interest Declines
Despite Bitcoin's impressive surge last month, which saw it reach an all-time high with a 33.14% gain, the current market momentum seems to be stalling.
Bitcoin’s availability on exchanges has continued to shrink, with recent data showing a 0.61% drop in the Exchange Reserve in the last day and a 1.53% decline over the past week. A decrease in available Bitcoin on exchanges usually signals potential scarcity, which can support price growth.
This diminishing supply has contributed to Bitcoin’s recent price increase, but whether the rally can be sustained remains uncertain, with key indicators suggesting that selling pressure may soon emerge.
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Bitcoin has entered a critical price zone around $96,614, where a large concentration of sell orders could limit its upward movement. If Bitcoin starts to decline, analysts are looking to the next demand level at $93,578, which could offer some support with significant buy orders concentrated there. However, this support is contingent on the strength of the ongoing selling pressure.
One key demand zone for #Bitcoin to watch is $93,580, where 667,000 addresses bought nearly 504,000 $BTC. Staying above this support level is a must to prevent these holders from selling! pic.twitter.com/UdXTZOYzGH
— Ali (@ali_charts) November 28, 2024
An additional concern is the uptick in Bitcoin inflows to exchanges, which saw 2,678 BTC transferred in just 24 hours. This increased flow of Bitcoin onto exchanges raises the possibility of further price declines. Compounding this, retail investor interest appears to be waning, as the number of active Bitcoin addresses has decreased by 35.03%. A drop in active addresses typically signals a slowdown in buying activity, potentially leading to downward price movement toward the identified demand zone.
If Bitcoin can maintain its support at the demand level, a price rebound is still possible, but this will largely depend on the market’s response to the ongoing pressures.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
