- The price of Bitcoin is down more than 3% in the past 24 hours along with an increase in volume.
- BTC witnessed an increase in selling pressure, as evidenced by its foreign exchange net flow.
The crypto market witnessed another price correction on June 14, which caused most cryptocurrencies to lose their value. Bitcoin [BTC] was also hit, as the 24-hour price chart was painted red.
After the episode, several investors were faced with the dilemma of whether the market would recover or whether the downtrend would prolong. According to CoinMarketCap, BTC fell more than 3% in the past 24 hours. At the time of writing, it was trading at $24,887.75 with a market cap of over $483 billion.
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Bitcoin’s downtrend has a silver lining
According to CryptoQuant’s latest analysis, it seemed likely that the June 14 downtrend wouldn’t be that big. IT Tech, an analyst and author at CryptoQuant, stated in a analysis that if the aSORP was to be taken into account, the last price correction had the metric reading at 0.99, which was quite neutral.
In the current ‘bull’ market phase, the aSOPR acts as an important support. To begin with, aSORP is a ratio that calculates the proportion of output spent that is currently generating profit. This ratio is determined during a certain time window.
Source: CryptoQuant
But what about BTC’s next bull rally?
While aSOPR suggested that the latest price correction was minor, investors may have to wait longer before BTC starts its next bull rally. MAC_D, an author and analyst at CryptoQuant, pointed in his analysis that while multiple indicators showed that BTC had already exited the oversold phase and was in the recovery phase, it seemed that BTC would take some time to reach the bull market phase.
According to the analysis, the biggest factor influencing the change is in BTC prices was the change in the value of the dollar. However, SEC regulations made US institutional investors feel obligated to invest in crypto. Therefore, it may take longer for BTC to actually kickstart its next bull rally.
Read From Bitcoin [BTC] Price prediction 2023-24
In the meantime…
…BTC‘s net deposit on exchanges was high compared to the past seven days. This suggested that the coin was under selling pressure. In addition, BTC’s price drop was accompanied by a 61% increase in trading volume, which was typically bearish.
Surprisingly, during the price correction, the supply of BTC on exchanges fell, while the off-exchange supply increased.
Source: sentiment