What's Next For Bitcoin? Key Resistances Lost

Bitcoin BTC/USD just fell off of a cliff and is headed towards the next major resistance while its fundamental on-chain metrics continue to be mostly bullish.

What Happened: According to CoinMarketCap data, by press time Bitcoin's price fell more than 7.7% over the last 24 hours and is currently trading at $43,700. Looking at the daily Bitcoin chart, we can notice it broke through the 0.5 Fibonacci level at $46,750 and the upper border of the Ichimoku Kumo at $45,550.

At today's lowest low of $42,450, Bitcoin touched on the 0.382 Fibonacci level which it near-perfectly bounced off of. If this support does not hold then we should expect Bitcoin to see $37,150 as the next stop. The RSI currently stands at 41, meaning that while it is admittedly approaching the oversold territory it is not low enough to break Bitcoin's fall. 

See Also: WHAT IS BITCOIN, AND HOW DOES IT WORK? 

Bitcoin's trend took a turn for the worse in the short term, but it still looks quite bullish when it comes to long-term investment perspectives. Glassnode data shows the percentage of Bitcoin on crypto exchanges keeps falling as the net transfer from them continues to exceed how much is being transferred to them.

Furthermore, more advanced metrics such as the MVRV Z-Score and the Puell Multiple suggest Bitcoin is not even close to being overvalued or the peak of the current hype cycle. The only on-chain metric suggesting a correction was recently due is the percentage of unspent coins that are in profit since they were last transferred. This metric shows as of Sept 6, 95.5% of unspent coins were in profit, suggesting profit-taking was due and it was followed by a crash in Bitcoin's price.

Now, this metric stands at over 91%: still rather high, but not critical as over 95% was.

See Also: IS BITCOIN A GOOD INVESTMENT? 

Image by VIN JD from Pixabay