Bitcoin (BTC) Witnesses Constriction on Price Charts; What to Expect?

  • Technical indicators flashed volatility around two-year lows.
  • Can BTC crash the support at $19K in the upcoming weeks to have bulls reeling?

USDT Dominance measures the crypto market capitalization in Tether. Meanwhile, the metric has soared since mid-August. That signals that market players preferred holding stablecoins over cryptos. Recent weeks saw Bitcoin maintaining the support at $19K, though it also neared the 4-month range lows.

Also, it indirectly signals bearishness within the marketplace. News of soaring interest rates and inflation dent cash flow into risk assets like BTC, and recoveries might showcase months or years to come.

Bollinger Bands Shows Massive Squeeze Underway

Since June, Bitcoin has traded inside the $24.4K – $18.6K range. The crypto has tested the long-term range lows several times since September. Meanwhile, each retest triggered a weaker reaction than the former.

That would likely welcome buyer exhaustion in the impending retest, translating to a BTC crash beneath the footholds at $17.8K & $17K. How far south can the asset go? Though a distressing outlook for Bitcoin bulls, BTC might target levels at $16.2K.

The RSI (Relative Strength Index) encountered resistance at 50-neutral and failed to climb beyond the area over the past few weeks. Meanwhile, the OBV (on-balance volume) maintained declines since mid-September while showing dominant selling momentum within the marketplace.

The BB width indicator hit 0.07 lows on its daily chart – exploring levels last touched in October 2020. Though a slow, colossal rally followed the move, the prevailing Bitcoin contraction might have a contrary tale.

Exchange Supply Hit New Lows

The exchange supply metric maintained downsides throughout the year. That indicated market players moved tokens from exchange to private wallets, possibly cold wallets. That likely signaled accumulation. Remember, the exchange percentage has never been this low since November 2018.

The dormant circulation noted a massive surge some days ago. The chart indicated that the spike reflected BTC exit from exchanges. Meanwhile, the dormant circulation metric has stayed minimal in most sessions since July and didn’t see enormous upsides.

Profitability Down Amid Rising Hash Rate

The past months saw the BTC hash rate soaring. That represented an optimistic outcome, increasing the network’s security against attacks. Also, Bitcoin miner profitability plunged. It hovered around October 2020 lows. Time will tell whether miners will eventually surrender to sell their Bitcoin or accumulation over recent years reduced chances of miner capitulation.

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