- Bearish sentiment remains dominant across Bitcoin’s market
- A few metrics and whale actions could be key to a price reversal
As a researcher with experience in the cryptocurrency market, I believe that bearish sentiment remains dominant across Bitcoin’s market. However, a few metrics and whale actions could be key to a price reversal.
The price of Bitcoin [BTC] has dipped once more beneath $64,000, fueling concerns about potential additional declines on the price charts. While numerous factors might be contributing to this correction, it’s worth considering recent activities by the whale community as a possible explanation.
Bitcoin whales take profit
In the past 24 hours, bears in the cryptocurrency market became more active, causing Bitcoin’s price to decrease significantly. As of now, according to CoinMarketCap, Bitcoin is priced at approximately $63,042, and its total market capitalization exceeds $1.24 trillion.
The decrease in this metric additionally influenced the social indicators related to the cryptocurrency. Specifically, AMBCrypto’s examination of Santiment’s statistics showed that Bitcoin’s overall sentiment shifted to the negative – Indicating that pessimistic feelings prevailed among investors.
Recently, Phi Deltalytics, a cryptocurrency expert at CryptoQuant, brought attention to an intriguing observation that might explain Bitcoin’s recent price decline.
As per the analysis, whale Bitcoin exchange inflows recorded a notable surge.
As a researcher studying Bitcoin market trends during the 2024 bull run, I observed that inflows from hikes represented a large percentage of the total exchange inflows. This finding suggested that whales were actively engaging in profit-taking activities. However, it’s important to note that historical data reveals a concerning pattern: whenever this specific metric has surged previously, it was typically preceded by price corrections.
Will Bitcoin fall even further?
Based on the current bearish trend in Bitcoin’s price, AMBCrypto examined its metrics to determine if a more significant decline was imminent. According to CryptoQuant’s statistics, buying interest has been low among investors in the United States and South Korea, as indicated by negative Bitcoin premiums on Coinbase and in the Korean market.
As an analyst, I’d rephrase it this way: After experiencing a surge in Bitcoins held on exchanges on the 24th of April, there has been a noticeable decrease in these reserves since then. This trend suggests that selling pressure on Bitcoin may be easing up.
AMBCrypto’s observation of Glassnode’s data pointed out yet another bullish signal.
As a crypto investor, I’ve noticed a significant drop in Bitcoin’s (BTC) Network Value to Transactions (NVT) ratio recently. This ratio is calculated by dividing the market capitalization by the total value of transactions on the network, expressed in US dollars. The decrease suggests that the price of Bitcoin might be overvalued relative to its transactional activity.
As a crypto investor, when I notice that a metric is decreasing for an asset like Bitcoin (BTC), I interpret it as a sign that the asset may be underpriced. In this specific instance, such a decrease suggested to me that the potential for BTC’s price to increase was quite substantial.
According to a recent report by AMBCrypto, an advanced AI system has forecasted that Bitcoin’s price could reach around $77,000 over the next thirty days.
Read Bitcoin [BTC] Price Prediction 2024 -2025
To gain a clearer perspective on Bitcoin’s trend, AMBCrypto examined its daily chart in detail. The Money Flow Index (MFI) for Bitcoin displayed an increase and was poised to move above the threshold of 70, which represents overbought conditions. Additionally, the Chaikin Money Flow (CMF), another technical indicator, sat comfortably above the neutral mark of 0.
Based on the trends indicated, Bitcoin’s price chart was predicted to potentially regain an uptick. However, the Relative Strength Index (RSI), which measures the strength of recent price changes to evaluate overbought or oversold conditions, presented a bearish outlook as it moved downward.
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2024-04-27 17:11