Bitcoin’s (BTC) price has once again rebounded above $40k in the past 24 hours, thus triggering mixed reactions on different social platforms. Gradually, the crypto market has been trading in a classic sell-the-rumors scenario in the past two weeks, but a possible market reversal could happen in the near term.
Furthermore, apart from Grayscale’s GBTC, which has been dumping large amounts of Bitcoins daily, the other fund managers offering spot BTC ETFs have accumulated a combined average of 12k coins daily in the past two weeks. As a result, crypto experts have argued that the dozen fund managers offering spot Bitcoin ETFs cannot be compared to whales but only to leviathans.
Bitcoin Price Action
According to the on-chain data analysis provided by Glassnode, the short-term holders’ (STH) realized price is currently hovering around $38,125 compared to the long-term holders’ (LTH) realized price of around $20,911.
As a result, a popular crypto analyst has argued that Bitcoin bulls must defend the short-term holders’ realized price to avoid a possible panic selling as traders rush to minimize losses. Nevertheless, a drop below the $38k support level could provide another entry level for short-term holders, as the macro bullish outlook is about to be triggered by the fourth Bitcoin halving, which is about 88 days from happening.
Technical Outlook
Against the United States dollar, Bitcoin price has been trapped on a falling trend since the approval of spot Bitcoin ETFs in the United States. Despite the recent weekly golden cross between the 50 and 200 Moving Averages (MA), Bitcoin is facing accelerated selling pressure as shown by the weekly Relative Strength Index (RSI) that recently fell below the 70 level for the first time this year.
Source: https://coinpedia.org/price-analysis/bitcoin-price-might-crash-heavily-if-drops-below-this-level/