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Worsening Bearish Market Conditions Could Push BTC Down to $12K

Published 10/01/2022, 07:15 AM
Updated 10/01/2022, 07:30 AM
© Mundo Crypto PR Worsening Bearish Market Conditions Could Push BTC Down to $12K
BTC/USD
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  • Leading cryptos have failed to pique traders’ interest as bear dominance continues.
  • There is currently a shortage of supplies between $18k and $11k-$12k.
  • The price of BTC is currently trading at $19,315.86.

Some of the biggest cryptos by market cap have failed to pique traders’ interest as bears continue to dominate the market. The price of the crypto market leader, Bitcoin (BTC), is still trading under the $20k level – hovering in a range of around $19,500. Despite the adverse macro and market environment, the price of BTC is up just over 1%.

The blockchain analysis firm, Glassnode, published its on-chain newsletter titled “The Great Detox”, last week. Some of the information shared in the newsletter included the findings of an investigation underdone by Glassnode, wherein the firm evaluated a number of on-chain data that showed a generally negative prognosis for BTC.

As BTC attempts to return to the $20k region, an analysis of short-term holders’ behavior reveals a decline in favorable circumstances. The study revealed that short-term holders make the biggest contribution to BTC’s price movements and that there has been a cluster of currency movements around the present price action of Bitcoin.

Furthermore, Glassnode discovered a shortage of supplies between the $18k and $11k-$12k zones. Therefore, short-term holders risk going broke if BTC’s price drops below the lows of this cycle.

If the bearish environment in the market worsens, the price of the crypto market king could be hammered to $12,000 due to the unstable market behavior of these short-term holders. This is due to the fact that when volatility appears, short-term holders are the most prone to capitulate.

BTC is currently trading at $19,315.86 after a slight 0.65% drop in the price on the last day. This is according to CoinMarketCap.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

The post Worsening Bearish Market Conditions Could Push BTC Down to $12K appeared first on Coin Edition.

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