The whole crypto sector is expected to have a very bullish year in 2025, according to numerous speculators. A lot of people are worried that the flagship cryptocurrency won’t be able to break beyond $95,000 because Bitcoin (BTC) is facing heavy selling pressure on day one. Here at BeInCrypto, we take a look at the short-term price outlook for Bitcoin based on some important indications.
Bitcoin Others Question Uptrend Sustainability
The Bitcoin Premium Index reached 0.14 following the 2024 US presidential election. To gauge if US investors are selling in bulk or are under heavy buying pressure, maintains the Premium Index. Strong selling pressure is indicated by high values, such as those in November.
Having said that, the index has fallen to -0.22, its lowest level in the past twelve months, as of this writing. Investors in Bitcoin in the US are dumping their investments, as this major decrease suggests. Regardless, the price of Bitcoin has increased.
By a small 2.06% in the last day, and it is now trading at $95,318. If these investors keep selling their Bitcoin, though, the trend might reverse and the price of cryptocurrencies could fall. As a result of this change, crypto expert Burak Kesmeci said that the price of Bitcoin might find it harder to rise.
Price vs DAA Divergence in Bitcoin
The discrepancy between price and Daily Active Addresses (DAA) is another sign that lends credence to this prediction. The correlation between blockchain user activity and price movement is quantified by this indicator.
Bitcoin’s Struggle to Surpass In a positive value, it suggests that user engagement has increased, which is good news for the coin. But a negative reading portends dwindling user involvement, so it’s not all good news.
Above, we can see that the price DAA divergence of Bitcoin has dropped to 231%, suggesting the second option. If this trend continues, the chances of Bitcoin selling below $95,000 could become considerably more significant.
Bitcoin Price Could Fall Below $90k
Despite Bitcoin’s recent gains, the exponential moving average (EMA) indicates that this surge may be short-lived. When compared to price, the exponential moving average (EMA) provides a sense of the general direction of a trend.
Slopes of the exponential moving average (EMA) above the price indicate a negative trend. However, a bullish trend is shown when the price rises above the indication. Cryptocurrency prices may continue to fall since they are now below the 20-day exponential moving average (blue).
The potential price decline to $85,851 is triggered by the failure of the cryptocurrency to surpass the 20 EMA and the subsequent increase in selling pressure on Bitcoin. This tendency might shift, though, if buyers from the United States put pressure on Bitcoin prices. Under such circumstances, the value of the coin may surge to $108,398.
Summary
Bitcoin may struggle to break $95,000 due to severe selling pressure, but the crypto sector is expected to do well in 2025. The Bitcoin’s Struggle to Surpass Premium Index is at a year-low, signalling US investors are selling Bitcoin. Bitcoin has gained 2.06%, but selling might reverse this. Additionally, the price-Daily Active Addresses (DAA) disparity shows falling user activity, lowering Bitcoin’s price prospects. Bitcoin may fall below $95,000 to $85,851 unless US purchasers boost it to $108,398.
FAQs
What does the Bitcoin Premium Index indicate?
The drop in the Bitcoin Premium Index suggests US investors are selling off their Bitcoin, indicating potential price decline.
How does the DAA divergence affect Bitcoin's price?
The price-DAA divergence shows declining user activity, which could lead to a further drop in Bitcoin’s value.
Could Bitcoin’s price fall below $90k?
Bitcoin’s price could decline to $85,851 due to increasing selling pressure and failure to surpass the 20-day exponential moving average (EMA).
What could trigger a Bitcoin price surge?
If US buyers start pushing Bitcoin’s price, it could rise to $108,398 despite the current selling trend.
