BTC Price Nears Critical Support Level and May Continue to Fall

The Bitcoin (BTC) cryptocurrency rate has reached a key support zone, which is formed by a long-term ascending trend line on the weekly chart and coincides with the New Whales Realized Price metric. According to several experts, this combination of technical and on-chain factors makes the current level the most important line of defense for the market.

According to the researchers, the picture shows that a break of the trend line could break the bullish structure and lead to an even greater decline in BTC quotes. At the same time, on-chain data reflects the interest of new large investors who bought bitcoins in this zone and will defend their positions, not wanting to suffer losses.

The situation is complicated by signals of weakening bullish momentum: bearish divergences on the RSI and MACD indicate a decrease in buying power. This increases the likelihood that support may be broken. This, in turn, will be a strong signal for a sell-off.

However, against the backdrop of these risks, the activity of long-term holders is growing. According to CryptoOnchain, storage addresses that have never sold coins have reached a new record of more than 266 thousand BTC. Such wallets are usually associated with investors who are set on long-term storage.

The trend highlights Bitcoin’s growing role as a store of value, with corporate treasuries, institutional players, and retail investors continuing to strengthen their positions despite short-term uncertainty.

The market will be under increased scrutiny in the near future. Holding the current support could return momentum to the bulls, while its loss would open the way to a protracted decline. The final direction of BTC will become clear after the price reacts to this key area.

Source: cryptonews.net