Bitcoin Bulls getting restless as $BTC continues to trade in a narrow range

Bitcoin’s price has begun to decline after hitting a wall at the $27,500 mark. The digital asset has been having difficulty lately, failing to break through the $27,500 barrier. As a result, it has dipped below the $27,000 and $26,800 levels, indicating a bearish inclination.

BTC whales, defined as addresses owning 100–100,000 BTC, have dumped 0.9% of their total supply since early June, making up 55.5% of the total supply of BTC, which is their lowest market share since May. Long-term hodlers presently hold 13.44 million Bitcoins, close to a record high, according to data from “Into the Block,” which is an astounding 69% of the total circulating supply, which is currently at 19.49 million BTC.

On an hourly chart, the BTC/USD pair also had a disruption in its upward momentum, falling below the support of its trend line at the $26,800 level. The pair later landed at a level of $26,350 and are currently navigating through a phase of consolidating their losses. 

Currently, Bitcoin is trading below the $27,000 mark and the 100-hourly Simple Moving Average

Bitcoin 5-day chart. Pic Credit: Trading View

An immediate obstacle is in the $26,800 area, and a more noticeable barrier is close to the $27,000 level, both underlined by a predominately negative trajectory.

If Bitcoin is able to surpass the $27,050 barrier, it may begin a climb toward the $27,500 resistance. Additional significant improvements could set it up for a push to the $28,800 mark in the coming days. But if Bitcoin stays quiet below the $27,000 barrier, its downward trend might persist.

The current level of support for the cryptocurrency is about $26,350, while a crucial support area is located around $26,200. A clear break and close below the $26,200 level would start a more significant bearish trend, driving Bitcoin possibly toward the next support level of around $25,400.

Despite dropping below $26,800 and reentering its trading range, Bitcoin is still moving laterally, so there’s no need to be alarmed. In the upcoming days, there might be some turbulent market movement, so good traders should ensure they use tight stop losses on all of their trades. But BTC bulls continue to remain optimistic as the hashrate of Bitcoin is at an all-time high, and fresh funds are entering the market soon in the form of various ETFs.

Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Puskar Pande

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