For instance, the cost basis of 1w–1m short-term holders flattened out above that of the longer-term holders (1m–3m) in Q1, “marking an early sign of weakening demand in the immediate term.”Related: Bitcoin price drops 2% as falling inflation boosts US trade war fearsBitcoin’s drop below the $95,000 level saw the 1w–1m cost basis slide below the 1m–3m cost basis, “confirming a transition into net capital outflows.”Glassnode noted:“This reversal indicates that macro uncertainty has spooked demand, reducing new inflows… and suggests that new buyers are now hesitant to absorb sell-side pressure, reinforcing the shift from post-ATH euphoria into a more cautious market environment.”Bitcoin STH capital flow.
Source: Cointelegraph/TradingViewPopular crypto analyst Daan Crypto Trades says that the 200-day SMA at around $83,700 and the 200-day EMA at $86,000 are key levels as they are “solid indicators of the mid/long term trend and overall strength of the market.”In other words, failure to produce a decisive close above the 200-day SMA and flipping it into a new support level could lead to a longer consolidation period for Bitcoin price.
Bitcoin price faces stiff resistance on the upsideBitcoin also trades below key resistance areas, as shown in the chart below:On March 9, BTC fell below the 200-day simple moving average (SMA) at $83,736.
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Author / Journalist: Cointelegraph by Nancy Lubale
