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Whales came in with good buying pressure in January and halted the long cryptocurrency winter, and the market has been bullish ever since. But things are about to change for Bitcoin. Let us discuss what may likely happen to the price of Bitcoin if this quarter fails to present strong buying pressure.

Low Buying Pressure Detected On Bitcoin Dominance

 

Data from Bitcoin dominance shows a clear decline in the percentage of Bitcoin in the cryptocurrency market with more Altcoins and high-return projects taking the lead as investors are looking to close the year in profit.

The bulls were ushered in by a surge in Bitcoin dominance above 50% but a steady decline has printed lower lows and lower highs down to 49.13% and the fall continues, signifying withdrawal of investors from Bitcoin into other quick return Altcoins and projects.

 

Buying pressure is important for BTC DOM
source: Tradingview

Bitcoin Market Analysis

The market has been bullish since 2023 Q1 but what looks like an obvious price retracement is set to pull price below $20,000 if no serious buying pressure is added by bullish whales.

Bitcoin has been printing higher high and higher low since January and is currently testing and ranging on $24500 level but the fact that it broke the eight-month trendline and got rejected at $28000 shows that the bears are warming up to drive the market into a retracement.

Unless the bulls do something to the buying pressure in the market, Fibonacci retracement shows that we may be heading down to $20,000.

BTC in need of buying pressure
source: Tradingview

If buying pressure keeps reducing, bears are going to ensure the market trades as low as $20k before the end of 2023.

The only hope for Bitcoin to continue its bullish move will be to make a higher high above $32k, but a break of price through the present support level will call the bears in.

 

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DISCLAIMER: Cryptocurrency is very volatile and all the information on this blog is not financial advice so make sure you consult your licensed financial advisor before making any investment decision. 

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