Last chance to get the price!
Since October 16th of this year, Bitcoin has been experiencing a loss of wallets on the network. On that day, the number of non-empty wallets reached a peak of 59.99 million; as the price fell below $75,000, the network has seen a reduction of about 108,700 wallets. Clearly, smaller holders are losing patience.
Last chance to get the price!
The last glimmer of optimism for Bitcoin came in early November with a brief rebound to the range of $80,000 to $81,000. However, this fluctuation could not be sustained, and the price soon fell back near $76,000, opening the door for further declines. Since its peak in October of nearly $87,000, BTC has fallen by about 14% and has given back all of the gains accumulated since late August.
BTC has fallen below all major moving averages, and most of these averages are trending downwards, indicating that the current market trend is deteriorating. RSI also supports this judgment, hovering around 40, showing a bearish momentum, or at least a sideways trend.
Driven by falling prices, retail investors are still full of fear: smaller traders are merging or emptying their wallets. Currently, there are about 59.88 million non-empty wallets on the network, while the supply from exchanges is close to 1.28 million BTC. However, a decrease in the number of wallets does not necessarily mean a decline in the usage of Bitcoin.
But where will BTC ultimately stabilize? In reality, the closest "reasonable" support level is in the range of $74,000 to $75,000, and buyers have already entered this area this week. Considering the volatility of the market, discussing the possibility of a fall below this range is not very meaningful.
Support levels are not guaranteed to be maintained.
However, even if BTC manages to hold the $74,000 support level, the bulls may not be able to return immediately. There are almost no signs that retail investors will return to the market to help BTC regain key prices. Worse still, the overall market environment is not favorable for the bulls, so it might be more prudent to prepare for a longer period of correction.
If the bulls make an unexpected comeback, a rebound to $78,000 to $80,000 would be the primary goal, as several moving averages are currently located in that range. A decline in price accompanied by a decrease in the number of wallets is usually seen as a sign that the sellers' momentum has weakened, as small investors tend to give up when fear is at its strongest.
Whether buyers can hold the $74,000 level is the main test Bitcoin is facing currently. The number of wallets is still decreasing, and the price remains below the moving average; short-term rebounds will not change the overall situation.
