Bitcoin Price Struggles Amid Bearish Dominance: BTC Could Drop to $12K

Bitcoin Price Struggles Amid Bearish Dominance

Bitcoin (BTC) continues to face headwinds as bearish sentiment dominates the cryptocurrency market. Currently trading at $19,315.86, BTC has failed to break above the $20,000 level, hovering around $19,500. Despite a slight 1% gain amid adverse macroeconomic conditions, the outlook remains uncertain.

Supply Shortage and Market Risks

A notable supply shortage exists between the $18,000 and $11,000-$12,000 price zones. This scarcity could exacerbate downward pressure if BTC's price drops below current cycle lows. Short-term holders, who significantly influence price movements, are particularly vulnerable to capitulation during periods of heightened volatility.

Glassnode's On-Chain Analysis

Glassnode's "The Great Detox" newsletter highlights concerning on-chain data. Short-term holders' behavior suggests declining confidence, with clustered activity around BTC's current price. If market conditions deteriorate further, BTC could plummet to $12,000, driven by panic selling from these holders.

Current Price Action and Risks

BTC's price has dropped 0.65% in the last 24 hours, reflecting ongoing instability. The cryptocurrency's inability to gain momentum above $20,000 raises concerns about its near-term trajectory. Investors should remain cautious, as further bearish momentum could lead to significant price declines.

Disclaimer

The views and information presented are based on market analysis and should not be considered as investment advice. Readers are advised to conduct their own research and due diligence before making any investment decisions. Any actions taken are at the reader's own risk. Coin Edition and its affiliates are not liable for any direct or indirect damages or losses resulting from the information provided.