5 Signs The Bitcoin Bears Are Running Out of Steam at $30K Support
Bitcoin has been stuck around the crucial $30,000 support level for the past month, unable to break out and continue its bull run. Many analysts have declared the end of the latest crypto bubble, stating that Bitcoin is heading back down to $20,000 or lower. However, there are several signs emerging that indicate the Bitcoin bears may be running out of steam and unable to push the price much lower. Here are 5 key signs that the selling pressure may be weakening at the $30K support level.
Strong Support Around $28,000
The first sign is that Bitcoin has strong support around $28,000. Despite heavy selling pressure from bears, Bitcoin has stubbornly held above $28,000. This suggests there is significant buy interest around this price level that is absorbing all the sell orders. As long as Bitcoin can maintain the $28,000 support, the bears will struggle to gain control and drive the price lower. This strong support indicates the bearish momentum is waning.
Prolonged Extreme Fear
Secondly, the crypto Fear & Greed Index has remained in “Extreme Fear” territory below 20 for over a month. This prolonged period of extreme fear and bearish sentiment suggests the selling pressure may be reaching an exhaustion point. Historically, extended periods of fear lead to a reversal as investors get too pessimistic. With so much negativity already priced in, the market could be setting up for a relief rally.
Decreasing Put/Call Ratio
In addition, Bitcoin options data shows a decrease in put/call ratios. A lower put/call ratio means there is less demand for put options, which profit from a falling Bitcoin price. With fewer traders betting on the further downside, it signals the bearish outlook is moderating. Less demand for put options reflects dwindling bearish momentum.
Falling Exchange Balances
Next, cryptocurrency exchange balances have declined, which could make rallies more likely due to reduced selling supply. There are fewer Bitcoin sitting on exchanges ready to be sold off. Falling supply on exchanges means bears have fewer coins available to short or sell, which can accelerate upside moves when buying interest returns.
Long-Term Holders Still Accumulating
Finally, blockchain data indicates long-term holders are absorbing selling pressure and accumulating Bitcoin. The amount of Bitcoin held in accounts that have been held for over 155 days continues rising. As long-term holders keep accumulating, it shows strong hands view any dip below $30K as a buying opportunity. With long-term holders remaining confident, the bears are running out of Bitcoin to keep selling.
Conclusion
In conclusion, while the bears have maintained control in the short term and kept pressure on Bitcoin, multiple signs suggest their momentum is fading. The strong support at $28,000, extreme fear sentiment, decreasing put options demand, falling exchange supply, and continued accumulation by long-term holders all indicate the selling pressure may be reaching its limit. If the bulls can stabilize and hold the $30K level, Bitcoin could consolidate and prepare for its next leg up in this ongoing bull market. Savvy investors should watch these key signals as a sign the bears are running low on steam and another rally may be on the horizon.
You may like The Ultimate Bitcoin Calculator: A Comprehensive Guide to Analyzing and Optimizing Your Investments
Disclaimer
Cryptocurrency trading carries inherent risks and should be approached with caution. The volatile nature of the market can lead to significant financial losses. Please be aware that any information provided in this article or related to cryptocurrency trading is for informational purposes only and should not be considered financial advice. It is recommended to conduct thorough research, seek professional guidance, and only invest what you can afford to lose. The decision to engage in cryptocurrency trading is solely at your own risk.
