Bitcoin opened Monday at $115,316 and edged close to $117,000 but fell short by a few hundred dollars. Price action at the time of writing indicates that it lost momentum afterward.
The 1-day chart indicates that the apex coin dropped to a low of $114,421 but rebounded and is now trading at its opening price. However, it is worth noting that this is its lowest valuation in the last three days, and there are indications that this may be the lowest it will reach this week.
Nonetheless, the latest selloffs came after BTC experienced notable increases last week. A previous analysis noted that the asset was in a fragile state, where it was neither fully bullish nor bearish, as indicated by on-chain data at the time. The article ended with a speculation of a surge to $116k.
The prediction came true as the apex coin surged from $111,144 to $116,805, and it ended the session with gains exceeding 3%.
The latest downtrend is a reflection of small profit-taking by investors. However, the chart and other onchain data suggest that the decline is short-term and will end soon.
Bollinger Bands Indicate No Further Decline.
A look at the 1-day chart paints a grim picture of how prices may act in the coming days. It is worth noting that this does not take into consideration the impending fundamentals.
Nonetheless, a breakdown of the chart to a smaller timeframe indicates that the recent decline has reached its limit and prices will not retrace further.
A closer look at the bollinger bands on the 4-hour chart shows that the apex coin slipped below the lower band a few hours ago but rebounded. It has since registered higher lows as buyback resumes. However, based on the readings from BB, $114k may be the lowest of the day.
It is also worth noting that investors are expecting fireworks on Wednesday. Bitcoin may experience increased buying pressure in the hours leading up to the rate cut, and this trend may persist throughout the week, potentially increasing the likelihood that $114k will be the lowest price of the seven days.
Bitcoin Scarcity Increases
Recent data indicate that the apex coin is poised for another significant surge. Investors are returning to accumulation, with a report noting that the asset is experiencing nearly the same level of buying as in June.
Data from CryptoQuant revealed that the Bitcoin scarcity index on Binance jumped for the first time since the sixth month. It indicates that buyers are accumulating more BTC at a rate that exceeds the current supply.
Another report states that miners are no longer selling as they hold on in anticipation of further increases. Spotting the trend, ShayanBTC7 said, “The combination of a technical structure shift and miner accumulation provides a constructive outlook. As long as $112K holds, Bitcoin appears well-positioned to sustain momentum.”
Both outlined data indicate that the apex coin is going to surge higher as the spot market bullish structure becomes stronger. Adding the positive indicators is the exchange reserve. The metric is down by almost 0.70% as the buying continues amid the ongoing decline.
Nonetheless, traders in the derivative market are becoming increasingly optimistic as the taker buy-sell ratio is above 1.
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