- The price of Bitcoin has fallen by more than 6% in the past seven days.
- Some figures pointed to a market bottom, but indicators showed otherwise.
Bitcoin [BTC] witnessed a significant price correction last week, causing fear among investors. But things could soon take a turn for the worse as there were chances of a trend reversal. This seemed to be the case as BTC mimicked the 2017 price trend.
The historical trend of Bitcoin
Investors didn’t make any profits last week as BTC’s chart remained red. According to CoinMarketCapBTC fell more than 6% over the past seven days, pushing the price back below the $67,000 mark.
At the time of writing, BTC was trading at $66,896.42 with a market cap of over $1.32 trillion.
Meanwhile, Milkybull, a popular crypto analyst, recently posted a tweet highlighting an interesting development. According to the tweetBTC mimicked a trend it followed in 2017 before embarking on a bull rally.
The tweet indicated that the price of BTC was about to reach a market bottom, after which, if history repeats itself, the price of BTC could trigger a bull rally. Moreover, an indicator also showed a bullish divergence, just like in 2017.
There was more good news. AMBCrypto’s analysis of Glassnode’s data also revealed a bullish indicator.
According to BTC’s Pi Cycle Top indicator, Bitcoin’s price was at the bottom of the market, and if a trend reversal occurs, it could soon reach $89,000.
Source: Glassnode
Is BTC Preparing for a Rally?
AMBCrypto then checked CryptoQuant’s facts to see if the statistics also indicated a price increase. BTC’s foreign exchange reserve fell, which meant that selling pressure on BTC was low.
Source: CryptoQuant
The binary CDD was also green, meaning that long-term holders’ moves over the past seven days were lower than average. They have a motive to hold on to their coins. However, the rest of the metrics looked bearish.
For example, BTC’s aSORP suggested that more investors are selling at a profit, which could cause even more problems for BTC’s already bearish price action.
Moreover, BTCs fear and greed index had a value of 63% at the time of writing, meaning the market was in a ‘greed’ phase. When the benchmark reaches this level, it indicates that the likelihood of a price drop is high.
A number of market indicators also looked quite bearish. For example, the Chaikin Money Flow (CMF) had shown a sharp decline.
Read Bitcoins [BTC] Price prediction 2024-2025
Moreover, the Relative Strength Index (RSI) also rested below the neutral line, indicating a further decline in prices.
Nevertheless, the Money Flow Index (MFI) supported the bulls as it moved north from the neutral point.
Source: TradingView
