- The relationship between BTC’s MVRV ratio and its 30-day SMA suggested further price decline.
- Market sentiment around Bitcoin remained bearish.
King coin Bitcoin [BTC], descending to the current crypto carnage, things turned bearish overnight as the price fell more than 3% in the last 24 hours.
The price had fallen below the $40,000 mark at the time of writing, causing fear among investors. In addition, a key Bitcoin metric also turned bearish, hinting at the possibility of an ongoing downfall.
Bitcoin investors are suffering losses
As previously described by AMBCrypto report, Bitcoin’s fear and greed index had previously settled into a neutral position.
Our analysis in the aforementioned article suggested that the possibility of BTC witnessing a further downtrend was high, especially when the coin wobbled above the $41,000 mark.
The analysis proved to be true, as the king coin lost more of its value, a downward trend that continued well into press time.
What does the future bring?
According to CoinMarketCapBTC is down more than 3% in the last 24 hours. At the time of writing, the king coin was trading at $39,254.71 with a market cap of over $770 billion.
In the meantime, CryptoQuant author and Datascope analyst emphasized an important point That could cause even more problems for investors.
The analyst used the relationship between the MVRV (Market Value to Realized Value) ratio and the 30-day Simple Moving Average (SMA) to point out an interesting development.
Source: CryptoQuant
Datascope noted that in cases where the MVRV ratio is below the SMA, a potential downtrend in the price could occur.
To emphasize their point, the analyst plotted the metrics in the chart above, which compared BTC’s price to the MVRV and SMA metrics.
A similar crossover occurred recently, which could be an indication of that BTCThe price would drop even further.
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AMBCrypto’s analysis of CryptoQuant facts showed a similar bearish pattern. Interestingly, both Coinbase Premium and Korea Premium were in the red at the time of writing.
This clearly meant that selling sentiment was dominant among US and Korean investors at the time of writing.
Source: CryptoQuant