Bitcoin (BTC) Price Escapes Bearish Mini Death Cross Pattern, On-Chain Data Remains Bullish

Traders are keeping a close eye out for the development of a mini death cross — the crossover between the 50 and 100 EMA moving averages — as the price of Bitcoin dropped.

As the price of Bitcoin continues to drop, traders are closely monitoring the potential formation of a mini death cross, which is the crossover between the 50 and 100 EMA moving averages. While not as severe as the 100 and 200 EMA crossover, this pattern could indicate an increase in selling pressure.

However, BTC appears to have evaded this bearish formation and is unlikely to encounter it. The resilience of Bitcoin's price action is evident as it rebounds from key support levels and continues its upward trajectory. The 50 EMA remains above the 100 EMA, preventing the mini death cross scenario from unfolding. This suggests that the anticipated increase in selling pressure may not yet materialize in the market.

On-chain data further supports this optimistic outlook. An impressive 72% of Bitcoin addresses are in the money, indicating that they hold Bitcoin purchased below its current market value.

This suggests a high level of investor confidence and potential support levels that could prevent further losses. Moreover, the correlation between volume and price reveals a consistent flow of capital into Bitcoin, which is crucial for maintaining its price levels.

Currently, at a critical price point of $67,105, nearly 89,000 addresses are in the money, creating a strong support zone. The overall market sentiment remains cautiously optimistic. Bitcoin's ability to sustain levels above key moving averages and support points suggests a continuation of its bullish trend despite recent volatility.

To anticipate a surge in selling pressure, traders and investors should closely monitor rapid price movements and on-chain metrics, which will indicate the direction of the market.

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