Bitcoin (BTC) price momentum is slowing, and downside risks are rising

Bitcoin (BTC) reached a new all-time high on December 17 but is still 5% below the $110,000 level. Indicators such as the ADX and NUPL are indicating a slowdown in bullish momentum, indicating a potential shift in market sentiment.

While Bitcoin remains in the “belief and denial” zone, highlighting continued confidence, its failure to clear key resistance levels raises caution. The next few days will determine whether Bitcoin will regain bullish momentum to test $110,000 or face further corrections towards critical support levels.

The current trend of BTC shows a potential shift in sentiment

Bitcoin The DMI chart reveals that its ADX is currently at 29.2, down significantly from over 40 just two days ago when Bitcoin reached a new all-time high. This decline in the ADX indicates that although the trend is still relatively strong, its intensity is fading.

As the downward momentum continues, the market appears to be turning towards a period of consolidation or possible further decline.

The ADX (Average Directional Index) measures the strength of a trend, with values ​​above 25 indicating a strong trend and below 20 indicating a weak or non-trending market. Currently, BTC’s D+ at 18.1 and D- at 27.8 indicate that bearish forces are dominating, with sellers outpacing buyers in the short term.

This imbalance could send the price of BTC lower unless buyers regain control and D+ rises above D-, indicating renewed bullish momentum.

Bitcoin NUPL is far from the next thresholds

Bitcoin NUPL currently stands at 0.60, down from 0.628 when Bitcoin reached a new all-time high two days ago. This decline indicates a slight decline in unrealized profits among Bitcoin holders, reflecting some profit-taking or a market slowdown after the recent rally.

Despite this decline… Bitcoin price It remains firmly in the “belief and denial” zone, indicating confidence among investors but an appearance of caution.

NUPL (Net Unrealized Profit/Loss) measures the total unrealized gains or losses of BTC holders, and categorizes market sentiment into stages.

Values ​​above 0.5 fall into the “Belief – Denial” zone, while levels below 0.5 indicate the “Optimism – Anxiety” phase, and levels above 0.7 indicate the “Ecstasy – Greed” phase, which is often associated with market tops. Bitcoin The current position of 0.60 indicates that although sentiment is still bullish, it is far from overly greedy and still comfortably above anxiety levels.

BTC Price Prediction: Is $110,000 Still Possible to Reach in 2024?

if Bitcoin If the price can break through the resistance level at $103,638, it could gain enough momentum to test the all-time highs at $108,000.

A successful move beyond this level can pave the way for it Bitcoin price Reaching $110,000 for the first time, indicating continued bullish momentum and strong confidence in the market.

However, the EMA and ADX lines indicate that the current trend may be weakening, increasing the possibility of a bearish shift. If the short-term EMA crosses below the long-term EMA, a stronger downtrend could develop.

In this scenario, Bitcoin price It could test the $94,000 support level, and if it fails to hold, prices could fall further to $90,000, representing a potential 11.7% correction from current levels.