Is Bitcoin Really Valuable? Breaking Down Scarcity, Security and Adoption
Share
Key Takeaways
Bitcoin reclaimed $118,000 after briefly dipping below it, but faces resistance.
On-chain data shows a Taker-Sell Dominant Phase, suggesting sellers are in control.
Support at $109,500 could be tested unless Bitcoin’s price closes above $119,200 soon.
Over the weekend, the Bitcoin (BTC) price briefly dipped below $118,000. But today, the coin is back above that level.
Still, the road to higher levels is not clear yet.. On-chain data reveals potential resistance ahead, with several key factors signaling that BTC may struggle to extend its rally — at least in the short term.
So, what’s next for Bitcoin? Here’s what the data is saying.
Bitcoin Rally Tested
One indicator suggesting that Bitcoin price might struggle to climb higher is the 90-day Spot Taker Cumulative Volume Delta (CVD).
The Taker CVD is an indicator that measures the cumulative difference between market buy and market sell volumes over a specific period — in this case, 90 days.
It is calculated by accumulating the difference between Taker Buy volume (aggressive buyers) and Taker Sell volume (aggressive sellers). The resulting trend helps identify whether buyers or sellers are dominating the market.
Try Our Recommended Crypto Exchanges
Sponsored
Disclosure
We sometimes use affiliate links in our content, when clicking on those we might receive a commission at no extra cost to you. By using this website you agree to our terms and conditions and privacy policy.
Despite this outlook, crypto analyst Rekt Capital noted that Bitcoin’s price can overturn this if it closes above $119,200. He also pointed out this might not happen if the coin fails to reclaim that zone.
“Weekly Close above $119,200 kickstarts the breakout from this Bull Flag In which case turning $119,200 into support via a retest could occur next week (maybe even via a wick) However, for the moment BTC needs to avoid an upside wick beyond the Bull Flag Top resistance otherwise price would stay in the Range,” The analyst posted on X.
BTC Price Prediction: Bearish Divergence
On the daily chart, BTC has formed a bull flag, which is supposed to precede a breakout. However, the chart also shows a bearish divergence.
The divergence occurred as the Money Flow Index (MFI) reading tumbled as BTC’s price aimed to trade higher. The decline in the MFI reading indicates that distribution has outpaced accumulation.
Beyond that, the Awesome Oscillator (AO) has flashed red histogram bars. This AO position indicates that the momentum around Bitcoin is becoming bearish.
Should bulls fail to curb this divergence, BTC could drop to $109,500. If selling pressure increases, it might slide below the $100,000 psychological mark.
Alternatively, if buying pressure increases, the MFI reading might surge. In that situation, Bitcoin’s price might rise above the flag’s upper trendline and target a new all-time high of $163,236.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
