Bitcoin achieved a market capitalization of $1.08 trillion today with a daily high of $58,000. The prices opened the day for $56,243 and reached a high of $58,009 on Binance. Traders witnessed the daily low at $55,317.
A previous report by TheCoinRise shows that the BTC whales are enjoying the current dip of 16.53% from the all-time high made on Nov 10, 2021, at $68,789.
As per data from CoinMarketCap, there is a 14.64% rise in the trading volume of the token, currently standing at $38 billion. The Bitcoin dominance also dropped to 41.6% as compared to 47% a few weeks ago.
TheCoinRise also reported that the profit-taking sentiment is not yet over as the number of long-term Bitcoin holders continues to reach a multi-year high.
Bitcoin technical analysis on the daily chart
The price action fell down below the 50-day Moving Average a few days ago. However, the 100-day Moving Average continues to progress below the price action, indicating a bullish movement in the long term.
We saw the bears take over the price action as Bitcoin dropped from the lower end of the Bollinger Bands. This led to the onset of a downtrend as the prices continue to rest in the lower region of the Bands.
A surge in selling pressure created by the distribution of volumes in DeFi and metaverse tokens caused a drop in the RSI levels for Bitcoin. The gradient of the RSI line is positive, indicating that higher prices might be possible for today.
On the other hand, the signal line (the orange one) broke above the MACD line (the blue one), and now, prices are bearish. The bearish divergence indicates a surge in selling pressure followed by a bearish histogram full of red bars.
The Accumulation/Distribution pattern shows that the traders and investors continue to hold on to their Bitcoins and buy the dip. On the other hand, the OBV line shows that the bears are creating trouble for an uptrend as divergence signals set in.
Bitcoin has struck a controversial tune among the authorities as inflation breaks historical records. JPMorgan explained that high BTC prices are a clear indication of these high rates of CPI.
Back in 2020, TheCoinRise covered that financial analyst and economist Alex Kruger predicted hyperinflation, and it seems the prediction did come true as investors prefer BTC instead of gold as a hedge against inflation.