Bitcoin is facing a critical test as it retraces over 19% from local highs and holds above a key demand level around $54,000. This level acts as the last line of defense for BTC, and a break below it could indicate a deeper correction in play. Analysts and investors are actively sharing insights, with CryptoQuant CEO Ki Young Ju providing crucial data on Bitcoin’s current situation. His analysis focuses on on-chain metrics to explain why Bitcoin is struggling to maintain its value and predicts Bitcoin’s performance in the final months of the year.
Ju emphasizes the importance of US demand for Bitcoin’s bull run, noting a significant decline in demand that has led to selling pressure. He projects a potential rebound in US demand in the fourth quarter of 2024, suggesting that the market cycle has not yet reached the retail bubble phase. This perspective indicates room for growth as the market evolves, with investors advised to monitor demand metrics for insights into Bitcoin’s future trajectory.
Bitcoin is currently trading at $54,404, holding a critical support level crucial for preventing further declines. The coin is trading below the 4-hour 200 moving average (MA) at $59,263, with reclaiming and holding this level as support essential for reviving bullish momentum. A break above $60,000 could spark renewed demand and drive the price higher. Conversely, a drop below $54,404 could indicate a move towards lower demand zones, with $49,000 as a key target for testing.
In conclusion, Bitcoin’s current state reflects a consolidation period rather than a terminal decline, with price dynamics subject to fluctuations as demand trends shift. While short-term pressure is evident, the potential for a significant rebound exists if demand conditions improve as projected. Monitoring demand metrics and technical details will be crucial for understanding Bitcoin’s future trajectory and potential for recovery in the short term.
