Bitcoin
117,182 is grappling at $117,000, with the prospect of closing below this threshold raising concerns about the potential for an unpleasant weekend for traders. With US markets closed, the focus shifts toward the anticipated talks between Putin and Trump, which could set the tone for future price movements through their post-meeting statements. What are experts suggesting regarding this current market scenario?
Reasons Behind Bitcoin’s Decline
On-chain indicators reflect how news flow impacts investor behavior. Contrary to initiating a price drop, these indicators help identify who has influenced the price movements, as illustrated in the graph we’ll examine shortly. The direction has already been shaped by various factors.
According to a report by 21stcapital, on-chain data reminds us who triggered July’s rise and highlights the apparent risk in the current situation.
“Despite recent fluctuations, the key signal is the cessation of intense selling by long-term investors that began at the start of July. The last wave that rose to $121,000 is notably significant, considering the substantial selling pressure exerted by long-term investors throughout July. During that time, profit-taking levels exceeded +1 standard deviation, indicating extensive distribution by experienced holders. The long-term profit-taking wave created a persistent supply surplus, stabilizing the price and causing several sharp pullbacks below the $114,000 Air Gap. However, this was followed by a decisive change in demand strength. Rather than collapsing under the weight of distribution, buyers gradually absorbed the selling pressure and eventually gained momentum to push the price above $121,000. This movement confirms that the market successfully absorbed the old coin selling wall, which is a necessary step for a sustainable rise.”
Currently, while the selling motivation of long-term investors persists, the appetite of buyers counteracting these sales has weakened. This is due to expected PCE and CPI increases driven by high PPI in future reports. Consequently, any interest rate reduction might be delayed or start very slowly. The ongoing test during the preparation of this report will reveal the strength of the buyers. Successfully holding the $117,000 level would be a positive sign.
Solana (SOL) Challenges
SOLCoin has declined to $185, failing to maintain the crucial $189 level. The sudden drop in BTC price and ETH’s slip below $4,500 adversely impacted overall risk appetite. Had the PPI results been more favorable, different discussions might be occurring this weekend. Perhaps Trump will deliver remarks by day’s end to dissipate the negative sentiment. If he provides convincing statements about the end of the war with Russia and offers hope for easing tensions around Russian oil, this could alleviate risk market pressures.
“Solana was unable to surpass the $205 peak of the last fluctuation in its current movement by daily closing. Watch for a rebound from the 20-day EMA (yellow line) and the $180 upward trendline (indicated with an arrow). I find the limit offers here intriguing.”
