Bulls Hesitate To Buy the Dip After BTC Falls at $35K Level

On Friday, Bitcoin touches the $35,000 level again after an interest rate comment from US Federal Reserve. This BTC drop had bulls become hesitant to buy the dip but on-chain shows long-term holders continue to increase.

Bitcoin and traditional markets faced another dip as the US Federal reserve commented about the possibility of a rise in interest rates. As a result, concerns about a further downturn for BTC have been many discussions on a possible death-cross.

User @infonataliya warns traders that BTC shows the bearish signals as death cross may happen in a few days.

Today’s selling pulled BTC price below the crucial support at $36,000 level. Thus, it leads traders to forecast $32,500 as the next stop before it revisits the swing low of $30,000.

Consequently, these technical factors alongside negative headlines have traders feeling apprehensive about the current dip in BTC. Especially after the news of China mulls banning BTC mining activities and the ‘rug pull’ on the Iron Finance protocol.

On another note, the Fear & Greed Index has dropped to 25, a continuation of the extreme fear over the past month.

As investor fears are rising and some traders who bought during the March and May highs are selling at a loss. Clearly, the total supply of Bitcoin held by long-term holders continues to increase after reaching a low in the middle of May.

According to crypto Twitter analyst William Clemente III, recent on-chain data indicates that Bitcoin is oversold. He further added, “now sits on historically important inflection points for major on-chain indicators.”

Apart from this, the longer-term data hints a more optimistic future since whale wallets and long-term holders continue to increase their BTC balances. Currently, Bitcoin is trading at $35,613.21 with a 24-hour trading volume of $37,786,803,257. It is down 5.44% in the last 24 hours with a market cap of $667,335,428,563.

Follow us on Twitter, Telegram and Google News

Source: https://coinquora.com/bulls-hesitate-to-buy-the-dip-after-btc-falls-at-35k-level/