It has been a rough year for Bitcoin and most major altcoins. Over the last 24 hours, Bitcoin lost 1% of its value, which points towards consolidated price action. BTC has not made much progress over the past week either, as the coin only lost 1.6% of its market value.

For multiple weeks, the coin has been oscillating between $16,400 and $18,000. The closest support line for the coin stood at $16,000. The technical outlook for Bitcoin depicted mundane price action due to a decline in the buying strength on the one-day chart.

Since the price of Bitcoin has remained undecided for quite some time now, sellers have flooded the market, indicating that the coin is headed toward another round of depreciation. The trading volume of Bitcoin has declined considerably, reinforcing that bears were in charge of the asset’s price.

If the selling pressure keeps mounting, BTC will soon lose its crucial price level of $16,000. Currently, BTC is down 76% from its all-time high, secured in 2021.

Bitcoin Price Analysis: One-Day Chart

BTC was trading at $16,550 at the time of writing. Bitcoin was trading close to its immediate support level of $16,000. Going by the technical outlook, the coin might undergo further depreciation before it starts to reverse its price action.

Overhead resistance for Bitcoin was $16,900; clearing this could help the crypto reach $17,400 and eventually attempt to breach $18,000.

On the flip side, if Bitcoin moves below the current price mark, it will fall through $16,000 and exceed $15,800. The amount of Bitcoin traded in the last session declined, indicating a fall in buying strength for the asset.

Technical Analysis

BTC traders might again witness a fall in asset prices over the upcoming trading sessions. The Relative Strength Index (RSI) was below the half-line, near the 40-mark, which indicates that sellers outnumbered buyers heavily. RSI had also noted a downtick, signifying further loss of value.

Similarly, the BTC price was below the 20-Simple Moving Average (SMA) line, which signals that sellers were driving the price momentum in the market.

The SMA also formed a death cross; it is formed when a longer moving average line crosses over a shorter moving average line; in this case, the 50-SMA line was above the 20-SMA line. This sign on the chart is accompanied by the bears strengthening in the market.

Other technical indicators have also pointed out that sellers are here to stay a little longer. The Moving Average Convergence Divergence (MACD) indicates price momentum and reversals. MACD depicted a sell signal as the indicator noted red signal bars after undergoing a bearish crossover.

The sell signal could mean that the price would depreciate further. The Directional Movement Index, which portrays the price direction, was negative.

The -DI (orange) line was above the +DI (blue) line. The Average Directional Index (red) was near the 20-mark with an uptick, emphasizing that bearish action could gain momentum over the immediate trading sessions.

Data shows the Bitcoin long-term holder supply has mostly moved sideways since the high in October of last year.

Bitcoin Long-Term Holder Supply Has Stagnated As Sell-Side Balances Buy-Side

As per the latest weekly report from Glassnode, the BTC long-term holder accumulation seems to have stopped following the October high.

The “long-term holder” (or LTH in short) supply is the part of the total Bitcoin supply that hasn’t observed any movements since at least 155 days ago.

When the value of this indicator goes up, it means more coins are maturing beyond the threshold. Sustained such trend can be a sign of accumulation from investors, and can prove to be bullish for the crypto’s value.

On the other hand, a downtrend in the metric implies LTHs are selling their coins (thus resetting their age to zero days). Dumping from these holders is usually a bearish sign for the price of Bitcoin.

Now, here is a chart that shows the trend in the BTC long-term holder supply over the past few years:

Looks like the value of the indicator has stagnated recently | Source: Glassnode's The Week Onchain - Week 12, 2022

As you can see in the above graph, the Bitcoin long-term holder supply hasn’t shown much movement since the high in October.

The indicator seems to have followed a similar pattern over the past few years. Both in 2019 and 2021, the LTHs sold their coins and kicked off the respective bull rallies of the periods.

Related Reading | Bitcoin NUPL Suggests Bear Market Yet To Hit In Full Swing

And after the rallies started winding off, these holders started accumulating Bitcoin. At present, the holders have stopped the trend of hodling that started back in April 2021, but they also haven’t sold off.

The sideways movement suggests the coins maturing into the LTH range are being balanced off by selling from these holders.

Related Reading | Bitcoin Bullish Signal: Exchange Reserve Loses Another 50k BTC Over Past Week

It now remains to be seen whether Bitcoin long-term holders will up the selling in the near future, or if they will return back into a trend of accumulation until the next bull rally.

BTC Price

At the time of writing, Bitcoin’s price floats around $42.9k, up 10% in the last seven days. Over the past thirty days, the crypto has gained 15% in value.

The below chart shows the trend in the price of BTC over the last five days.

BTC's price looks to have observed a sharp surge over the past twenty-four hours | Source: BTCUSD on TradingView

Bitcoin had held above the $40k mark over the last few days, and today the coin spiked above the $43k level, before retracing back to the current levels.

Featured image from Unsplash.com, charts from TradingView.com, Glassnode.com