Bitcoin (BTC) is currently showing a bearish bias despite strong accumulation over the past month. Nearly three months after its halving event, the anticipated bull run has yet to materialize, raising concerns among investors. With relentless selling pressure and long-term metrics suggesting that Bitcoin’s price bottom is either close or already in place, the market sentiment remains cautious. As Bitcoin struggles to maintain its value amidst demand from ETFs and cooling inflation, traders and investors must prepare for potential price dips and strategize to protect their investments. Here’s a closer look at the indicators and steps you can take to safeguard your Bitcoin holdings.

Key Points

• Bitcoin is showing a bearish bias due to continuous selling, despite strong accumulation over the past month.
• Long-term metrics indicate that Bitcoin’s price bottom is likely close or already in place.

Bitcoin’s Struggle Despite Demand

Nearly three months after its halving event, the expected bull run for Bitcoin hasn’t materialized. This has led to questions about why the cryptocurrency is struggling, even with demand from ETFs and cooling inflation. A closer look at long-term metrics suggests that predictions of Bitcoin’s price bottom being close, or already in, are likely accurate.

Price Action Indicators

The 4-hour price chart indicates a range formation between $53.5k and $58.9k. The supply zone at $59.2k-$61k has been tested twice in recent days, but without success. The On-Balance Volume (OBV) shows that buying pressure is not strong, and the Relative Strength Index (RSI) was pushed below neutral 50 after the price rejection at the range highs. This suggests that traders should prepare for another price dip toward $55k.

The liquidation heatmap for the past month shows that the $59.5k liquidity pocket was tested on July 11th, and prices immediately retraced. This suggests that the liquidity cluster at $52.1k is the next target.

Opportunity for Traders

The mean coin age has been trending higher since May, indicating strong network-wide accumulation during the recent price dip. The 30-day Market Value to Realized Value (MVRV) is negative, showing short-term holders at a loss. Together, these factors present a strong buy signal.

The dormant circulation spiked dramatically on July 5th as Bitcoin prices dropped, but has been quiet since then.

Steps to Safeguard Your Investment

1. Diversify Your Portfolio

One of the most effective ways to safeguard your investment is to diversify your portfolio. By spreading your investments across various assets, you can reduce the risk associated with a single asset’s price volatility. Consider allocating a portion of your investment to other cryptocurrencies, stocks, bonds, or commodities.

2. Stay Informed

Keep yourself updated with the latest market trends, news, and expert analysis. Understanding the factors influencing Bitcoin’s price can help you make informed decisions. Follow reputable sources and stay connected with the crypto community to gain insights into market sentiment and potential price movements.

3. Set Stop-Loss Orders

Setting stop-loss orders can help you limit potential losses by automatically selling your Bitcoin when its price reaches a predetermined level. This strategy can protect your investment from significant downturns and provide peace of mind during volatile market conditions.

4. Consider Dollar-Cost Averaging (DCA)

Dollar-cost averaging involves investing a fixed amount of money at regular intervals, regardless of the asset’s price. This strategy can help you mitigate the impact of short-term price fluctuations and reduce the risk of making poor investment decisions based on market timing.

5. Use Cold Storage for Long-Term Holdings

For long-term Bitcoin holdings, consider using cold storage solutions such as hardware wallets or paper wallets. Cold storage keeps your private keys offline, reducing the risk of hacking and theft. Ensure that you store your cold storage devices in a secure location and keep backups of your private keys.

6. Monitor Technical Indicators

Regularly monitor technical indicators such as the RSI, OBV, and MVRV to gauge market sentiment and potential price movements. Understanding these indicators can help you identify buying or selling opportunities and make informed decisions to protect your investment.

7. Stay Calm and Avoid Panic Selling

Market volatility can trigger emotional responses, leading to panic selling and potential losses. It’s essential to stay calm and avoid making impulsive decisions based on short-term price movements. Stick to your investment strategy and make decisions based on thorough analysis and long-term goals.

Summary

In conclusion, the Bitcoin predictions of more losses hold weight due to the liquidity at $52.1k. The $46k region might also be targeted if sentiment weakens further. As things stand, investors can look to buy the dip. However, it is crucial to stay informed, diversify your portfolio, and use strategies like stop-loss orders and dollar-cost averaging to safeguard your investment. By monitoring technical indicators and staying calm during market volatility, you can make informed decisions and protect your Bitcoin holdings.

Please note that the information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

The author does not own or have any interest in the securities discussed in the article.