- The price of BTC has fallen by almost 4% in the past 24 hours.
- Statistics suggested that selling pressure on BTC was weak.
After reaching $68,000 on June 13, Bitcoins [BTC] the price turned bearish as the coin’s weekly and daily charts remained red.
Meanwhile, a key indicator revealed that the price had reached a critical level and fallen, which could lead to a further price correction in the coming days.
The Dark Future of Bitcoin
CoinMarketCaps facts revealed that the price of Bitcoin has fallen by almost 4% in the past seven days. At the time of writing, BTC was trading at $65,243.97 with a market cap of over $1.28 trillion.
It was interesting to note that despite the recent price drop, most of the BTC supply made a profit. To be precise, AMBCrypto reported previously, 87% of BTC’s total supply was profitable.
In the meantime, Ali, a popular crypto analyst, posted tweet indicate a possible price correction. According to the tweet, the price of BTC fell below the +0.5σ MVRV price band.
This suggests that this could cause a correction towards the average price range of $54,930. Therefore, AMBCrypto planned to take a closer look at the current state of BTC to see how likely it is that BTC will fall to $54,000.
Is a price correction inevitable?
AMBCrypto’s look at CryptoQuant’s facts revealed that BTC’s foreign exchange reserve was declining. This meant that selling pressure on the currency was relatively weak.
According to the Miners’ Position Index, miners sold fewer assets compared to the annual average, indicating that miners were willing to hold BTC because they expected the price of the coin to rise.
Things also looked quite optimistic on the derivatives market. For example, the taker buy/sell ratio was green, meaning buying sentiment was dominant in the derivatives market.
Moreover, BTC’s funding rate also increased, meaning long position traders are dominant and willing to pay short position traders.
Source: CryptoQuant
We then checked the daily chart of the king of cryptos to better understand what to expect from it in the short term.
According to our analysis of BTC’s daily chart, the Relative Strength Index (RSI) showed bullish momentum as it moved higher. A similar upward trend was also noted on the coin’s Chaikin Money Flow (CMF) chart.
Read Bitcoins [BTC] Price prediction 2024-25
These indicators suggested that investors could soon witness a price increase.
However, the Money Flow Index (MFI) looked bearish as it fell. The indicator indicated a continued price decline, which could lead to BTC falling to $54,000.
Source: TradingView