Bitcoin started the week with a decline, when important economic data will be announced and the FED will announce the last interest rate decision of this year.
BTC, which started Monday with a decline, rose to $ 44,600 on December 8 before the decline.
BTC, which has continued its downward trend since Monday, December 11, dropped to $ 40,200.
While Bitcoin is now awaiting the FED's announcement of its interest rate decision and the verbal statements of FED President Jerome Powell, a new report has arrived from Glassnode.
Stating that Bitcoin has made a round trip in recent weeks, Glassnode pointed out that BTC made sharp movements and encountered resistance at $ 44,600 levels.
Stating that Bitcoin fell to $40,200 after a sharp rise to $44,600, Glassnode described these movements of BTC as fatigue and burnout brought on by the sharp rise.
“The strong Bitcoin uptrend encountered resistance this week, rising to a 2023 high of $44,600 before experiencing the third sharpest sell-off of 2023.
However, it then fell sharply to $40,200. “BTC selling was as strong as the rally, marking the third largest one-day decline of 2023.”
Pointing out that the sales at this point came from short-term investors, Glassnode stated that in response to the strong price increase in recent months, Bitcoin Short-Term Owners stopped the rise of Bitcoin by selling profits.
“Mayer Mutiple Model Points to a Resistance Point!”
Finally, touching on the Mayer Mutiple model, which is popular as a technical pricing model in Bitcoin, Glassnode said that the Mayer Mutiple value also shows the resistance point.
At this point, Glassnode stated that the Mayer Mutiple value of 1.47 was reached for the first time after approximately 33.5 months:
“Looking at historical data and cycles, overbought and oversold zones coincide with Mayer Multiple values exceeding 2.4 or falling below 0.8, respectively.
The Mayer Mutiple value currently stands at 1.47.
As such, the current value sits near the ~1.5 level, which has often formed a resistance level in previous cycles, including the November 2021 ATH. This is an indication that Bitcoin is at a resistance point.
It has been 33.5 months since this level was exceeded. “This has been the longest period since the 2013-16 bear market, which shows us how harsh and challenging the 2021-2022 bear season actually is.”
At this point, Glassnode states that the Mayer Mutiple value reached the resistance point and Bitcoin Short-Term Owners made profit sales, triggering the decline in BTC.
*This is not investment advice.