Bitcoin is turning neutral in the short-term

While Bitcoin continues to trade around the upward-sloping parallel, the number of Bitcoin addresses with balances exceeding 1,000 BTC keeps rising. Indeed, this figure is up by about 7.53% (about 150 addresses) since it reached a low on 19th January 2024 and about 3.62% in the past two weeks. On the other hand, the number of Bitcoin addresses with balances exceeding 100 BTC is moving increasingly sideways, following nearly four months of declines. Measuring from the start of the huge takeoff on 13th October 2023, this figure is down about 1.2% (nearly 200 addresses). As for the number of addresses with balances exceeding 10 BTC, it keeps falling. Its decline from 13th October 2023 amounts to about 2% (approximately 3050 addresses). Regarding the technicals, there are multiple developments to watch out for. On the daily chart, the RSI broke below 70 points, and the MACD performed a bearish crossover. In addition to that, the Stochastic reversed and now points to the downside. Overall, the short-term trend is turning increasingly neutral for Bitcoin, with flattening ADX supporting this assessment.

Illustration 1.01

Illustration 1.01 portrays the daily chart of RSI. The yellow arrow indicates a bearish breakout below 70 points. While it could still be merely a fakeout, it should not stay overlooked.

Illustration 1.02

The picture above shows MACD's daily chart. The yellow arrow hints at a bearish crossover between the MACD line and the signal line.

Technical analysis gauge
Daily time frame = Neutral
Weekly time frame = Bullish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of multiple indicators.

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DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor or any other entity. Your own due diligence is highly advised before entering a trade.

Comment:

The pace at which Bitcoin addresses with balances exceeding 1,000 BTC have been growing is slowing down. In addition to that, so far, the RSI (on the daily time frame) has not returned to the overbought territory, and the MACD has not reversed to the upside.