- Bearish sentiment remains dominant in the Bitcoin market
- A few numbers and whale moves could be the key to a price reversal
Bitcoins [BTC] The price has once again fallen below $64,000, raising fears of a further decline on the charts. While several factors are at play, one possible reason behind the aforementioned price correction could be the latest moves by whales.
Bitcoin Whales Take Profits
The market bears have stepped up their game over the past 24 hours as the price of BTC fell on the charts. According to CoinMarketCapBTC was down over 2% at the time of writing, with the crypto trading at $63,042 with a market cap of over $1.24 trillion.
This drop also had an impact on the cryptocurrency’s social metrics. In fact, AMBCrypto’s analysis of Santiment’s data revealed that BTC’s weighted sentiment entered the negative zone – a sign that bearish sentiment maintained dominance in the market.
Source: Santiment
Additionally, Phi Deltalytics, an author and analyst at CryptoQuant, recently shared a analysis This highlights an interesting development, which could be the reason behind BTC’s latest price drop.
According to the analysis, whale Bitcoin inflows recorded a remarkable increase.
The rise was responsible for a substantial portion of the total foreign exchange inflows, indicating significant profit-taking by whales amid the 2024 Bitcoin bull run. If historical data is to be considered, when this measure has risen in the past, this has been followed by price corrections on several occasions.
Source: CryptoQuant
Will Bitcoin Fall Even Further?
Since the price of BTC has already turned bearish, AMBCrypto checked its metrics to see if a further downtrend will occur. According to CryptoQuant’s factsBuying sentiment was weak among US and Korean investors, with Bitcoin’s Coinbase and Korea Premiums also in the red.
The good news is that after peaking on April 24, BTC’s foreign exchange reserves started to decline – a sign that selling pressure on the king of cryptos was easing.
Source: CryptoQuant
AMBCrypto’s observation of Glassnode’s data pointed to a new bullish signal.
BTC’s Network To Value (NVT) ratio registered a sharp decline. To start, the NVT ratio is calculated by dividing the market capitalization by the transferred on-chain volume measured in USD.
Source: Glassnode
When the benchmark falls, it indicates that an asset is undervalued. On this occasion, it indicated that the chances of the price of BTC rising were high.
In fact, AMBCrypto recently reported that a well-trained AI model predicted that the price of BTC would reach $77,000 within the next 30 days.
Read Bitcoin [BTC] Price prediction 2024 -2025
AMBCrypto then analyzed Bitcoin’s daily chart to better understand whether an uptrend is likely to occur. BTC’s Money Flow Index (MFI) registered a rebound and continued trading above the neutral line. The Chaikin Money Flow (CMF) was also well above the neutral limit of 0.
These indicators suggested that BTC’s price chart could turn green again soon. However, the Relative Strength Index (RSI) looked bearish as it headed south.
Source: TradingView