Journalist
Posted:
- A bearish divergence was noticed on the chart of a key BTC metric.
- BTC fell 2% and some numbers were bearish.
Bitcoins [BTC] The price has been on somewhat of a sideways path over the past seven days as it moved only marginally. The bad news was that a bearish divergence was noticed on the chart of BTC, which indicated a decline in the price of the king of cryptos in the coming days.
Bitcoin bears are taking over
Over the past month, BTC registered a promising rally, allowing investors to make profits. If reported Previously by AMBCrypto, 80% of Bitcoin addresses were profitable.
This increase in profitable Bitcoin addresses may prompt holders to think about selling their holdings. An analysis of CryptoQuant facts discovered that the possibility of investors selling BTC became a reality.
BTC’s foreign exchange reserve also increased. Furthermore, net deposits on the exchanges were high compared to the last seven-day average, meaning selling pressure on the coin was high.
Source: CryptoQuant
The increase in selling pressure had a negative effect on the price of the coin. CoinMarketCaps facts pointed out that the price of BTC has fallen by more than 2% in the last 24 hours.
A bearish signal was BTC trading volume, which soared while the price fell. At the time of writing, BTC was trading at $35,620.69 with a market cap of over $696 billion.
Things could get even worse, as the latest data looked quite bearish.
Ali, a popular crypto analyst, recently posted a tweet highlighting the emergence of a bearish divergence BTC and the network growth graph. For starters, when Bitcoin’s price rises but network growth slows, it typically signals a trend reversal.
#Bitcoin | When $BTC the price increases but network growth slows down, this is a red flag. It suggests that the uptrend may not have enough momentum to sustain.
This bearish divergence between #BTC price and network growth is a sell signal that traders should be aware of. pic.twitter.com/QvJ2HwelBh
— Ali (@ali_charts) November 14, 2023
Is a further price drop inevitable?
A closer look at BTC’s statistics provided a better insight into the possibility of a further downtrend. Bitcoin’s aSORP was red, meaning more investors are selling at a profit.
In the middle of a bull market, this could indicate a market top. However, when AMBCrypto examined BTC’s supply, a different picture emerged.
BTCThe company’s supply outside the exchanges remained higher than the supply on the exchanges. Whale activity around BTC also remained high.
Furthermore, market sentiment surrounding BTC has been positive, as evidenced by the recent increase in weighted sentiment.
Source: Santiment
Is your portfolio green? Check the Bitcoin Profit Calculator
When checking BTC’s derivatives statistics on Mint glassAMBCrypto found that the coin’s open interest dropped slightly along with its price.
When open interest falls, the chance of a trend reversal increases. Therefore, it will be interesting to keep an eye on which direction the price of BTC moves in the coming days.