- Bitcoin was back below $30,000 after the boost it saw as a result of the SEC-Ripple lawsuit decision.
- At the time of writing, BTC was in the midst of bearish action due to selling pressure in the market.
Ripple’s victory against the Securities and Exchange Commission (SEC) gave the crypto community a much-needed boost. However, it was time for a reality check as last week’s festivities had ended.
At the time of writing, Bitcoin [BTC] was back in his old pattern and switched hands under $30k for $29,792. The King Coin was trading down 2.76% over the past seven days and down 0.37% over the past 24 hours.
Moreover, in a recent analysis of CryptoQuant, analyst Crazzyblockk stated that short-term interest in BTC witnessed a decline. How does this affect the price of BTC? Let’s find out.
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A slippery road ahead
According to the CryptoQuant Analysis, the holder’s realized price in the short term (<6 months) witnesses a decline as the accumulated interest in new investors diminishes. These new investors are typically on the market for the last 1-3 months.
In addition, the realized price of the short and long-term bonds has a significant impact on the market. The short term realized prices of the short term holders and long term holders (3-6 months) were 27.2k and 25.8k. However, the realized price for both bands mentioned above stood at 28.5k.
Source: CryptoQuant
On July 18, both bands were up 9.5% and 15.5% respectively. However, if a price correction happens, there could be some selling pressure from these holders.
Source: CryptoQuant
Is this a bear trap?
At the time of writing, data from TradingView showed that BTC was in the red. The Moving Average Convergence Divergence (MACD) showed the signal line (red) moving above the MACD line (blue). This was a strong bearish indicator.
Moreover, BTC’s Relative Strength Index (RSI) also witnessed a decline and stood at 48.88 at the time of writing. This meant that BTC has been a victim of some selling pressure in recent days. In addition, the press price of BTC was also 1.16% lower than its July 18 opening price.
Source: TradingView
It is safe to say that some short-term holders sold their BTC, as data from Coinglass indicated that over the past 24 hours, short positions of BTC outnumbered long positions.
Source: mint glass
Read Bitcoin [BTC] Price forecast 2023-2024
At the time of writing, BTC’s 24-hour long/short ratio was 0.952 with short positions at 51.23% and long positions at 48.77%.