One Painful Dip Before Next Bitcoin Price Rally? Here’s What Charts Show
On-chain data suggests Bitcoin may experience one more significant dip before the next major rally phase begins.Summary
Bitcoin's price has recently disappointed traders, dropping over the past week. On-chain analysis, specifically the Net Unrealized Profit/Loss (NUPL) metric, suggests the market bottom is not fully established. Currently, Bitcoin's NUPL is at 0.47, matching the first stage of a previous multi-stage drop that preceded a major rally from $76,000 to over $125,000. If this pattern repeats, a further decline toward 0.42–0.44 could occur by early to mid-December, signaling the next accumulation phase.
Adding to this bearish outlook, a critical "bearish crossover" is forming on the daily chart, where the 50-day Exponential Moving Average (EMA) is crossing below the 100-day EMA. This indicates short-term sellers are gaining control and could trigger panic selling, accelerating the shakeout needed to push NUPL to its final base range.
Key price levels to watch include support near $106,300 (0.786 Fibonacci retracement) and $103,500. A break below these could confirm the dip. Conversely, a strong daily close above resistance at $111,400 would invalidate the bearish crossover theory and suggest an immediate path toward $113,300.
(Source：BeInCrypto)