Although the major static and dynamic support lines failed on a daily timeframe, the selling pressure from long-term holders (inflow to all exchanges) was reduced after failing at the $39,000 support levels. A consolidation phase in the $36,000-$40,000 range is the most expected behavior for the medium-term window.

Technical analysis

By: Edris

Long term

Bitcoin price has lost two major supports in the past two days, and hopes for a recovery have turned into fear. BTC is currently trading below the $40,000 mark and the 50-day moving average, both key levels were broken during the recent upward move. The next critical level to watch would be the $36,000 area. With enough demand, a reversal towards the $40,000 resistance and the 50-day moving average could be anticipated.

Short term

The bearish momentum appears to be overwhelming on the 4-hour time frame as the price easily broke below the supports. However, it is currently trading in a key Fibonacci retracement zone (between 50% and 78.6%) which could potentially stop the decline in the short term. Thus, a consolidation phase is expected in the coming days where the bulls and bears collide between the $36,000 and $40,000 levels.

On-chain analysis

By: Shayan

Here, the influx to all exchanges is divided into different age brackets shown in the graph. Interestingly, each time the influx of old coins from 6 to 12 million increased, the market witnessed an upheaval. This structure can be interpreted as a distribution of long/medium term holders through recoveries.

On the other hand, short-term investors have been showing a lot of panic selling during bearish periods. Studying the behavior of short-term (