Recent developments in the US political sector triggered a brief surge in Bitcoin’s price on Wednesday, rising from $74,000 to $83,300 a few hours later. However, the flagship asset appears to be losing its renewed upside momentum as it drops below $80,000 once again. On-chain metric suggests that BTC’s bearish pressure might extend in the event that it falls below a key moving average level.
BTC’s Market Sentiment Hangs In The Balance
In a recent post on X (formerly Twitter), Glassnode, a leading on-chain data and financial platform, outlined a crucial moment for Bitcoin that could dictate its next price trajectory. While BTC has lost key levels due to the ongoing bearish pressure, the platform hints at a continued downtrend once it loses a key Daily Moving Average (DMA) level at $76,000.
Presently, BTC is dangerously close to the DMA level, sparking concerns about its price stability and renewed momentum. With volatility building around the asset, it might revisit this level in the upcoming days.
Glassnode highlighted that Bitcoin is below the 111DMA at $93,000 and 200DMA at $87,000 after recently testing the 365DMA at the $76,000 mark. Data from the Technical Pricing Models metric shows that these long-term moving averages have served as critical support zones for BTC in the past.
Meanwhile, if BTC revisits the $76,000 level and breaks below, Glassnode hints at a deeper structural shift in market sentiment. As the flagship asset struggles to find footing in this volatile period, this movement will reevaluate its short-term direction, triggering uncertainty among investors and spurring sell-offs.
During this time, BTC’s short-term holder realized price moved to $93,000 as observed in Bitcoin’s Short-Term On-chain Cost Basis metric. In addition, the ±1σ bands are currently sitting at the $131,000 and $72,000 levels.
The platform noted that prices are still within this range even though it almost tested the lower band. However, a decline below the $72,000 mark would cast doubt on short-term conviction and lead to additional declines.
More Key Support Zones In Bitcoin’s Price Dynamics
After breaking below the $72,000 threshold, the next key support areas are positioned at $71,000 and $65,000, identified as the Active Realized Price and BTC True Market Mean, respectively. According to Glassnode, these levels are crucial to protect since they are situated above a zone of limited liquidity. Furthermore, a drop to this range is likely to spark significant volatility and draw in long-term investors.
At the time of writing, Bitcoin’s price has fallen to $79,850, indicating a nearly 4% decline in the past 24 hours. The ongoing volatility has gone on for several weeks, and BTC has been unable to reclaim the $90,000 mark during this time. Despite this robust volatility, IntoTheBlock highlighted that more than 85% of holders were still profitable, demonstrating the cryptocurrency’s resilience in the midst of tariff worries.
