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Is Bitcoin Heading for a Drop? Key Signals to Watch
Bitcoin's MVRV ratio signals a cooling-off phase, with potential consolidation between $91,000 and $98,000.
Joe G & Money Talks
December 04, 2024 • Estimated Reading Time: 7 minutes
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What we will talk about today...
Why Is XRP Down Today? Key Factors Behind the Dip
Is Bitcoin Heading for a Drop? Key Signals to Watch
Crypto Analyst Predicts Flash Crash Amid $618M Liquidations
XRP's price dropped 5% to $2.61, driven by political turmoil in South Korea, profit-taking, and overbought conditions.
Main Points:
South Korea Impact: Martial law declaration triggered panic selling, with XRP prices plummeting locally.
Profit-Taking Surge: Investors realized $4B in profits, the highest since April 2021.
Overbought Signals: RSI suggests buyer exhaustion, hinting at a deeper correction.
Detailed Insights:
Political Turmoil: XRP’s price on Upbit, South Korea's largest exchange, briefly crashed over 50%.
Exchange Activity: 654M XRP tokens moved into exchanges, signaling selling intent.
Overbought RSI: RSI above 70 on multiple timeframes suggests potential consolidation or further decline.
Support Levels: $2.50 emerges as a potential entry point for latecomers to the rally.
XRP's impressive rally faces short-term challenges, with consolidation likely before a new breakout.
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Is Bitcoin Heading for a Drop? Key Signals to Watch
Bitcoin's MVRV ratio signals a cooling-off phase, with potential consolidation between $91,000 and $98,000.
👍 The average returns of Bitcoin wallets that have been active in the past 30 days now sits at a much more reasonable +4.2%.
📉 +5% or more on this metric is usually a strong indicator that a correction is near.
📈 -5% or less on this metric is usually a strong indicator that… x.com/i/web/status/1…— Santiment (@santimentfeed)
9:37 PM • Dec 3, 2024
Main Points:
MVRV Ratio Signal: Currently at +4.2%, just above the correction threshold.
Resistance and Support: Key levels at $98,000 (resistance) and $91,000 (support).
Market Outlook: Sideways movement or slight pullbacks likely before the next breakout.
Detailed Insights:
MVRV Metric: Historically, levels above +5% suggest overbought conditions, while below -5% signals undervaluation.
Retail Losses: Late-November entrants face small losses, stabilizing market cap.
Key Levels:
Resistance: $98,000 and $100,000 where momentum hesitated.
Support: $91,000 backed by strong volume; $81,500 marked by the 50-day moving average.
Future Trends: Breaching $100,000 could reignite bullish momentum, while breaking below $91,000 may lead to a deeper correction.
Caution: Monitor MVRV and price movements closely; consolidation could precede the next big trend.
₿itcoin reached $96,650. +1.56%
♢Ethereum reached $3,719. +3.00%
Market liquidations surged to $618 million, sparking flash crash warnings. Analysts view this as a long-term buying opportunity.
Main Points:
Liquidations Surge: $618M liquidated in 24 hours, including $85.8M in BTC and $61.5M in ETH.
Flash Crash Warning: Analyst predicts sharp correction but advises seizing buying opportunities.
South Korean Impact: Martial law declaration triggered market panic and temporary price drops.
Detailed Insights:
Flash Crash Potential: High leverage positions increase the risk of cascading liquidations during corrections.
Market Recovery: Following South Korea’s political turmoil, Bitcoin and Ethereum recovered 2.4% and 3.3%, respectively.
Whale Behavior: Bitcoin whales remain inactive but increased BTC inflows to exchanges signal potential sell-offs.
South Korea's Role: Retail trading volumes surged to $18B, outpacing the stock market by 22%, intensifying market volatility.
Outlook: A flash crash could present a strategic entry point for investors, though caution is advised amid heightened volatility.
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This article is not financial advice. Market conditions can change rapidly, and past performance does not guarantee future results