For Bitcoin, the most valuable cryptocurrency in terms of market capitalization, things are looking iffy.
According to Ali, Bitcoin is now on shaky ground because its price is still far from any real support.
The crypto expert observes that the most crucial support range is between $22,785 and $23,595, where 1.34 million wallets hold 450,000 BTC. He bases this on data from IntoTheBlock. BTC was trading at $26,071 at the time of writing, only slightly down from the previous day.
The price range between $26,000 and $28,250, where 5.18 million wallets purchased 2.1 million BTC, however, is where Ali pointed out that BTC confronts strong opposition.
The cryptocurrency market is still undecided as traders look forward to the Federal Open Market Committee (FOMC) meeting of the U.S. Federal Reserve on Wednesday. The Fed will announce its interest rate decision on Wednesday at 2:00 p.m. ET (6:00 p.m. UTC).
As most investors predict a “hawkish” pause in which the central bank maintains interest rates stable while keeping the door open for future rises, the cryptocurrency market price movement is now neutral, with little losses being recorded at the time of writing for major crypto assets.
Veteran trader Peter Brandt notices a price equilibrium for BTC based on recent price movement, which he regards to as “hinge behaviour.”
On-chain settlement remains quiet
On-chain settlement is still quiet, according to blockchain analytics company Glassnode, as the market’s overall transfer volume trades near cyclical lows.
It notes that the entire transfer volume remained at around $2.85 billion per day this week, with no discernible increase. This might be the cause of the recent market’s erratic price movement.
The availability of Bitcoin on cryptocurrency exchanges has decreased to its lowest levels since February 2018, according data from on-chain analytics firm Santiment.
The impact has been particularly notable after the SEC launched litigation against Coinbase and Binance earlier this month, with 6.4% of the supply departing exchanges in the most recent week.
