Bitcoin, the largest cryptocurrency by market capitalization, is currently at a “do or die” moment. According to prominent trader Josh Olszewicz, this pivotal point is based on his analysis using the Ichimoku Cloud indicator. The cloud is shaded green as long as Bitcoin’s price remains in an upward trend, while a red cloud indicates a downward trend.
The chart shows that the leading cryptocurrency is approaching the bottom of the cloud. To revive its bullish momentum, Bitcoin will need to bounce off the cloud support. Conversely, if it falls below this key support level, it could experience a more dramatic correction.
However, it is important to note that traders typically rely on several indicators, including the Relative Strength Index (RSI), to detect trend reversals. Bitcoin is currently priced at $64,450 on the Bitstamp exchange after falling by as much as 3.5% over the past 24 hours.
According to CryptoQuant CEO Ki Young Ju, long-term holding whales sold nearly $1.2 billion worth of Bitcoin through brokers over the past week. Coupled with $460 million worth of outflows from exchange-traded funds (ETFs), this amounts to $1.6 billion in sell-side liquidity. Ju warned that brokers might start depositing Bitcoin into exchanges, putting additional pressure on the market.
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The reason behind Bitcoin’s underperformance is that the number of new Bitcoin users has dropped to its lowest level in several years. The company suggested that Bitcoin may have become a product “for whales only.” Additionally, Jurrien Timmer, the Director of Global Macro at Fidelity Investments, recently highlighted the slowdown in Bitcoin network growth.
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