- After reaching $61k, BTC witnessed a price correction.
- Selling pressure on the coin has increased over the past 24 hours.
Over the past 24 hours, optimism in the crypto market has increased as Bitcoin [BTC]the king of cryptos, has recovered $61,000. However, the trend did not last long as the coin witnessed a price correction. Let’s take a closer look at what’s going on with BTC.
Bitcoin turns bearish again
The king of cryptos gained bullish momentum and managed to rise above $61,000 on August 20. But the scenario changed quickly as the bears took over the market.
According to CoinMarketCapThe price of BTC has fallen by more than 2.5% in the past 24 hours. At the time of writing, the coin was trading at $59,378.99 with a market cap of over $1.17 trillion.
Interestingly, this recent price correction was not unforeseen.
Ali, a popular crypto analyst, posted tweet which showed that BTC’s TD sequence marked a sell signal. Shortly after the signal was revealed, the price of the coin underwent a correction.
AMBCrypto’s look at CryptoQuant’s facts pointed out quite a few factors that may have played a role in cursing BTC’s price decline. According to our analysis, BTC’s foreign exchange reserve rose, indicating an increase in selling pressure.
The fact that investors were selling Bitcoin was further proven by the increase in alternating current.
To be precise, the net deposits of BTC on the exchanges were high compared to the seven-day average. Higher deposits can be interpreted as higher selling pressure. Nevertheless, BTC’s Coinbase Premium remained green, indicating that buying sentiment was dominant among US investors.
Source: CryptoQuant
Will this trend continue?
AMBCrypto then looked at Glassnode’s data to find out if this bearish trend would continue. We found that Bitcoin’s NVT ratio dropped significantly.
A decline in the measure means an asset is undervalued, indicating an increase in price. To start, the NVT ratio is calculated by dividing the market capitalization by the transferred on-chain volume measured in USD.
Source: Glassnode
But things in the derivatives market did not seem to be in the buyers’ favor. For example, BTC’s taker buy/sell ratio turned red. This clearly meant that selling sentiment was dominant in the futures market.
That’s why AMBCrypto checked BTC’s daily chart to better understand what to expect. The technical indicator MACD showed a bullish crossover.
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BTC’s Relative Strength Index (RSI) was slowly approaching the neutral point, which was a bullish signal.
Nevertheless, the Chaikin Money Flow (CMF) turned bearish as it registered a decline.
Source: TradingView