Bitcoin's Recent Pullback: A Technical and Macro Analysis!

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·@untilwelearn·
6.561 HBD
Bitcoin's Recent Pullback: A Technical and Macro Analysis!
### Namaste to all of you. Hope you all are well and enjoying life!

Investors are worried after the recent massive drop in cryptocurrency markets, led by Bitcoin. The drop, which saw Bitcoin fall from its all-time high of $124,000 to as low as around $110,000, could be due to a combination of technical factors and broader macroeconomic pressures. Although some consider it a warning sign, my technical analysis suggests that it could be a healthy consolidation before the next leg of the uptrend.

<p style="text-align: center" dir="center"><img src="https://images.ecency.com/DQmeQFdmfzGfitVx6BL5suW7htDTzxPpngiFyHSpeU5REBw/bitcoin_s_recent_pullback.png"></p>

[Source.](https://www.freepik.com "https://www.freepik.com")

From a technical perspective, the recent price fluctuations point to a traditional “profit-taking” phase that is considered perfectly healthy. After a rapid rise to new highs, a decline is a natural, healthy and expected part of the market cycle. On-chain data confirms this, showing an uptick in “short-term holder” capitulation. This means that a large number of investors who bought Bitcoin relatively recently have sold their holdings at a loss or small gain, temporarily increasing supply in the market and putting pressure on prices.

However, a closer look at key support levels shows a resilient market. Since I am a trader and not an investor, I have made decent profits even in this dip, keeping a close eye on the $108,000-$110,000 and $112,000 levels. About which I had also replied to Haejin's Bitcoin analysis tweet on Twitter a few days ago. These areas have historically been strong support zones, and the fact that an asset remains above important support areas indicates that a large number of “dip-buyers” are still active. The Crypto Fear & Greed Index, which has recently moved from “greed” to “neutral” territory, also shows that excessive euphoria has subsided somewhat, which could be a positive sign for a more sustainable uptrend in the future.

<p style="text-align: center" dir="center"><img src="https://images.ecency.com/DQmNQF7MiVS1Drwr3MjExh9jZpXZ7oy31SxrvfrQTWULeXY/tweet.png"></p>

Looking at the near future, Bitcoin's movement will likely depend on a mix of macroeconomic catalysts and on-chain metrics. On the macro front, market sentiment is heavily influenced by signals from central banks, especially the US Federal Reserve. An accommodative stance on interest rates will keep pressure on risk assets like crypto. Conversely, any sign of a dovish stance could trigger a relief upmove.

Meanwhile, on-chain fundamentals remain strong. Despite short-term holders selling, institutional accumulation continues. Data shows that large institutions, or “whales,” have been increasing their Bitcoin holdings during the dip, which is a very good sign at a fundamental level. The rise of corporate Treasuries and continued investment in Bitcoin spot ETFs, despite the recent decline, indicate strong long-term conviction. This type of institutional interest is seen as a key stabilising force that could prevent another severe downturn. Although volatility is expected to persist in the short term, underlying fundamentals suggest that this latest drop is more of a consolidation than a reversal. Consolidation and base building are key parts of the market before an uptrend can potentially resume.

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`Note:`

1.  `English is not my first language. So sometimes I use 'Google Translate'. Please don't think that anything I have written in this blog has been copied from somewhere or is AI-generated.`
    
2.  `Thumbnail is edited on canva.com another is a screenshot from X.com.`
    
3.  `All the other content images and words are mine unless otherwise stated.`
    

<p style="text-align: center" dir="center"><img src="https://images.ecency.com/DQmes8JvADgvLDZah9gDi4TMTExa8mVTkTF6UkzJjoCyiUg/divider5.png"></p><h3 style="text-align: center" dir="center">Have a Happy and Blessed day!</h3>
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