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Bitcoin (BTC) price rallied today after the U.S. Dollar Index fell sharply in response to the Bank of Japan’s raising their upper band limit for 10-year yields to 50 basis points. The BTC price rebounded after hitting a low of $16,398 on Monday and extended gains on Tuesday to hit almost $17,000.
The Bitcoin price soars nearly 2% in the last 24 hours, with the price currently trading at $16,933. The 24-hour low and high for Bitcoin are $16,398 and $17,028. The resistance near $17,150 remains crucial for the BTC price. Bitcoin will be bullish in 2023 if the BTC monthly close breaks above the resistance level.
Bitcoin On-Chain Data Indicates Selloff
While the bear market rally supported by the weak U.S. dollar amid Bank of Japan monetary policy changes pushes Bitcoin price upwards, the upcoming rally will likely be weak.
On-chain data indicates short-term Bitcoin holders, especially 3-6 months, are selling their Bitcoin holdings continuously. In fact, the decline in BTC price observed on Monday was due to a selloff by 3-6 month Bitcoin holders.
Bitcoin Spent Output (3-6 Months). Source: CryptoQuant
Historically, the Spent Output Age Bands rise for 3-6 months holders is followed by massive downward movements. In fact, a sharp move occurred just before the FTX crisis. Therefore, traders must keep an eye on the Spent Output of 3-6 month Bitcoin holders to help predict an upcoming Bitcoin price fall.
Also Read: Is $19K Still Possible Or Bitcoin (BTC) To Fall Below $15K?
Crypto Analysts’ Bitcoin Predictions
Crypto analyst Michael van de Poppe predicts that BTC could have a strong continuation if it breaks the $16,900 level. Moreover, Bitcoin holding the $16.5K support level remains key for the price rally toward $18K.
Rekt Capital earlier suggested that Bitcoin price holding the $17,150 level will be crucial for Bitcoin and altcoins. If Bitcoin closed the month below the support level, a move toward $13,900 can be seen. Moreover, Bitcoin has strong resistance at $18K and a strong rally is possible only if BTC price breaks the $18K-$19K level.