Bitcoin at Risk of Further Price Declines

Bitcoin [BTC] has continued with choppy price movements after dropping by 2.3% to trade at $58,740 at the time of writing. The price decline also saw market sentiment shift from "neutral" to "fear." The recent surge in BTC's price above $60,000 revived market confidence, but this confidence was short-lived, as the Short-term Holder Spent Output Profit Ratio (SPOR) has since dropped to near the break-even point, signaling decreasing profit margins and the possibility of a surge in selling pressure.

Downside Risk Remains Elevated

Bitcoin needs to break above a descending trendline to minimize the downside risk, per a recent report by 10x Research. This downtrend appeared on the one-day chart, with BTC facing resistance each time it has attempted a breakout, indicating the potential for further price declines.

Factors Driving the Downward Trend

The recent surge in BTC's price above $60,000 revived market confidence, but this confidence was short-lived, as the Short-term Holder Spent Output Profit Ratio (SPOR) has since dropped to near the break-even point, signaling decreasing profit margins and the possibility of a surge in selling pressure. This, combined with the ongoing downtrend, suggests that Bitcoin is at risk of falling below the 20-day EMA, which could signal further losses in the near term.

Source: https://ambcrypto.com/bitcoin-at-risk-of-further-price-falls-heres-why/

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