Bitcoin: Evaluating the Probability of BTC Dropping Below $12K
- BTC bottom could be far as deteriorated volume indicated more support loss.
- Volumes might dip further as holdings exit the exchanges’ custody.
Bitcoin’s recovery chances have continued to dwindle since the world’s largest crypto lost the support level at $19.5K. CryptoQuant’s analyst Ghoddusifar shared this view recently. He trusts Bitcoin’s volume profile disconnected from the surging possibility.
Thus, the BTC remains at a risk of plummeting massively toward $11.8K. Ghoddusifar commented on the latest trend of faded volume, stating that $16K may not be the final Bitcoin footing. Santiment trusts the analysis was valid.
For instance, the previous day saw Bitcoin price increasing by 1.6% (Coinmarketcap data), whereas the volume resorted to a contrary direction, plummeting by 13.88% in that timeframe. The mentioned data shows the network saw fewer BTC transactions. Also, it highlighted that fewer market players traded the altcoin with the purpose of profits.
Over & Out
Besides the plummeting volume, investors faded confidence in centralized exchanges (CEXs) contributed to this outlook. That was the care regardless of the earlier turn-by-turn proof-of-reserves release. Meanwhile, Glassnode on-chain analyst Checkmate tweeted that Bitcoin investors hadn’t stopped swapping to self-custody.
He added that Bitcoin remained as back as 2018 left exchange guardianship. In that context, the exchange withdrawals didn’t signal amplified buying momentum. Nevertheless, it acted as a cue to rescue investors from enduring another collapse.
Nevertheless, near-term holders may not be the solitary cohort unlikely to survive the effects of the marketplace drawback. Long-term players remained vulnerable due to the NVT (Network Value-Transaction).
Santiment indicated that the Bitcoin network value to the transaction with circulation stood at 112 during this publication. That showed an upsurge from the number registered on November 17. That confirmed that the BTC network valuation exceeded the crypto’s daily circulation.
The volume/NVT comparison revealed similar circumstances. The 1-day uptick to 57.53 showed BTC could exhibit undervalued conditions at the current prices. Moreover, the platform remains highly expensive than the asset’s value. Therefore, long and mid-term holders may have to exercise patience before a respite showcase.
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