Can Bitcoin Reclaim Above $37,000? Current On-Chain Data!

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• In the last few hours, Bitcoin experienced extreme volatility, dropping from the $38,000 peak. This oscillation is the result of a battle between buyers and sellers.
• Data shows that Bitcoin triggered a total of $22 million in liquidations, with approximately $15.6 million of that representing long positions.
• Bitcoin’s recent surge is encountering resistance around $38,000, but bulls show no urgency to abandon their positions, indicating an expectation of the upward trend to continue.

Bitcoin Price Faces Heavy Selling Pressure after Reaching $38,000: Will BTC Fall Further? Current Data!

What Do On-Chain Data for Bitcoin Suggest?

In the last few hours, Bitcoin experienced extreme volatility, dropping from the $38,000 peak. This oscillation is the result of a battle between buyers and sellers. Initially, Bitcoin’s price fell to around $36,500, reaching a dip level, but a subsequent increase in buying interest led to a recovery. This activity is particularly visible in the derivative market, and several key indicators now point to a critical trading session.

Bitcoin’s drop from $38,500 to $37,000 in the last day caused an increase in total liquidations. Data from Coinglass shows that Bitcoin triggered a total of $22 million in liquidations, with approximately $15.6 million of that representing long positions. This erased hope for further buying as the price lost momentum toward the $38,000 level.

However, Cumulative Volume Delta (CVD) tells a different story; it suggests buyers are still in play. While Bitcoin’s price hovers around $37,000, there is a significant change in trading volume. The difference in CVD indicates the presence of buying volume signaling a correction despite the price drop.

Another sign is the increased limit buyers around $37,000. Limit orders are set to buy or sell a security at a specified price. The density of limit buy orders around this level indicates that traders expect it to be a favorable entry point and anticipate the price to rise again.

Interestingly, further decline may trigger aggressive intervention from spot bulls between $37,000 and $36,500. This move could absorb the ongoing selling pressure.

What to Expect for BTC Price?

Bitcoin’s recent surge is encountering resistance around $38,000, but bulls show no urgency to abandon their positions, indicating an expectation of the upward trend to continue. At the time of writing, the BTC price is trading at $36,790, which is a 1.4% decrease from the previous day.

Currently, Bitcoin finds support at the 100-day Exponential Moving Average (EMA) on the 4-hour price chart. A recovery from this level would indicate that traders are willing to buy at every minor dip. However, the price is currently moving within a specific range, and a breakout could create increased pressure.

If Bitcoin manages to surpass its trendline, it may head toward $40,000. However, this price point might pose a challenge. On the other hand, falling below the support level may indicate traders realizing profits, potentially leading to consolidation between $34,000 and $35,500.

Bulls are making efforts to keep the price above moving averages, but surpassing the $38,000 threshold remains a challenge. The Relative Strength Index (RSI), moving below the 39 level, suggests bullish dominance.