Bitcoin price today trades at $94,650 after dropping 12% from its all-time high (ATH) of $108,421. Investors are shocked due to the quickness of the recent crash that wiped out more than $1 billion worth of positions. But these three reasons suggest that BTC crash could be coming to an end. Let’s explore what comes next for the largest cryptocurrency in the world and the rest of the crypto markets. Three Reasons Why Bitcoin Price Crash Could Ends Soon With such a steep crash the question that matters is, “When will the crash end?” The reason why BTC could ends its drop soon can be split into three reasons: BTC techncials suggest that a key support level could absorbe the selling pressure and retire the bears. According to Santiment, short-term BTC holders are in loss and are less likely to sell now and realize losses. Whales that sold Bitcoin before the drop have accumulated 10,o00 BTC between December 19 and 22. Bitcoin Technicals Hint Strong Support The November 11 to December 11 consolidation shows that a 68% of the trading volume occurred between $90.9k and $100k. Although BTC price escaped the aforementioned range and set up an ATH at $108,421, the Fed’s hawkish comments triggered a 15% crash in Bitcoin price. The drop has set a local bottom at $92,230 on December 20, but the selloff might continue until BTC finds a stable support. Such a strong support is the value area low of $90.9k is a support level. This area is the lower limit of where 68% of the volume was traded between November 11 & December 11 and typically serves as an area of strong demand. Hence, there is a high chance of absorbing the selling pressure and ending the ongoing Bitcoin crash. In such a case, Bitcoin price prediciton hints that value area high at $100k is the next key hurdle. Clearing this will put the $102.7k to $105.3k daily imbalance as the next resistance zone. Only after clearing these two barriers will propel BTC to new highs. BTC/USDT 4-hour chart BTC Holders Unlikely to Sell At Loss According to on-chain data provider, Santiment, the 30-day Market Value to Realized Value (MVRV) indicator suggests that a further strong correction is unlikely. The MVRV hovers around -4.17%, which shows that the investors that purchased BTC in the past month are sitting at an average loss of 4.17%. Typically, a -10% to -20% is the opportunity zone, where capitulation from the short-term holders occurs and the transfer of BTC happens to long-term holders. Hence, a minor drop might occur, but a steep drop is highly unlikely considering BTC is already down 18%. This outlook is inline with the aforementioned technical outlook. BTC 30-day MVRV Whales Accumulate BTC On Dips Bitcoin whales have accumulated 10,000 BTC in just under four days, between December 19 and 22, according to data from Santiment. This outlook is in line with the technicals and short-term holder scenario, both of which suggest that the ongoing crash could end soon. BTC Supply Distirbution What’s Next For BTC? All in all, the outlook for Bitcoin could improve soon despite being drastically bearish in the past week. The $90.9k or the $90k psychological support level will be key in deciding where BTC could head next. Therefore, investors must pay close attention to the aforementioned levels as it could kickstart a recovery rally or a consolidation phase. The post Top 3 Reasons Why Bitcoin Price Crash Will End Soon appeared first on CoinGape .
