- The supply of BTC on exchanges increased, suggesting it was under selling pressure
- Bitcoin’s price is up 2% in the past seven days, but miners sold their holdings
The month of May was not in the interest of investors From Bitcoin [BTC] price registered a decent drop. BTC fell 8% as May closed, the worst month since the last crypto winter. With about a 6% drop so far this quarter; is this the perfect time for investors to collect more Bitcoin?
Selling in May and leaving was correct. #Bitcoin Down 8% as May ends, worse month since Nov. 22.
Down about 6% year-to-date this quarter; it seems to me a perfect accumulation after such a strong Q1. pic.twitter.com/Av2Hi7X5Mi— James V. Streets (@jimmyvs24) May 31, 2023
Bitcoin under attack
BTC’s weekly chart finally turned green after several days of sideways price action. According to CoinMarketCapthe price of BTC is up more than 2% in the past seven days.
At the time of writing, it was trading at $26,890.89 with a market cap of over $521 billion. However, the latest data suggested that the uptrend could end soon as selling pressure on BTC intensifies.
Bitcoin recently witnessed its 5th biggest sell-off this year. BTC valued at over $400 million was sold primarily by Coinbase, suggesting the coin was under selling pressure.
Yesterday saw nearly $400M of it #Bitcoin sold, the fifth highest amount this year, mainly from @coinbase.
Rising #DXY and a lack of liquidity related to the debt ceiling could have bearish implications going forward. pic.twitter.com/YdbXoFm5aH— James V. Streets (@jimmyvs24) May 31, 2023
Not only this, but data from Santiment also suggested the same result. The supply of BTC on exchanges increased, while the off-exchange supply was quite stagnant, which was a typical bearish signal.
Moreover, Bitcoin inflows also peaked, further increasing the likelihood of a price drop in the coming days.
Source: Sentiment
To add to the aforementioned story, the selling pressure also affected the sentiments surrounding the king of cryptos. According to the chart, BTCWeighted sentiment fell from a peak on May 29.
This reflected negative sentiment dominating the market. However, social dominance remained high, reflecting BTC’s popularity in the crypto market.
Source: Sentiment
These stats favored the bears…
A look at CryptoQuant’s facts revealed that BTC net deposits to exchanges were higher compared to the past seven days, further pointing to selling pressure. In addition, it was interesting to note that miners sold their assets.
Bitcoin’s Miners’ Position Index (MPI) was red, suggesting miners sold more positions compared to the year-over-year average.
Source: CryptoQuant
Read From Bitcoin [BTC] Price prediction 2023-24
Is Now the Right Time to Collect Bitcoin?
BTC could be witnessing another price correction as several market indicators turned bearish. The Moving Average Convergence Divergence (MACD) showed the possibility of a bearish crossover.
The Relative Strength Index (RSI) registered a downturn, which looked worrying. However, Bitcoin’s Money Flow Index (MFI) moved up slightly, which was a positive sign.
Therefore earlier BTC starts its next bull rally, this could be a good opportunity for investors to accumulate more BTC.
Source: TradingView