Journalist
Posted:
- Bitcoin’s social metrics have fallen over the past week.
- Derivatives metrics and market indicators looked bearish on the king coin.
After successfully crossing the $44,000 mark, Bitcoins [BTC] growth momentum slowed. However, the price fell prey to a price correction, as both the daily and weekly charts turned red.
AMBCrypto had before reported that the price of BTC could drop to $38,000 in the coming days.
At the moment of writing, CoinMarketCap showed that the king’s coin fell more than 6% over the past seven days, trading at $40,918.60 with a market cap of more than $800 billion.
Bitcoin is slowing down
Taking the latest data into account, investors should expect the king of cryptos’ price action to remain sluggish.
Notably, X (formerly Twitter) analyst CryptoCon recently revealed this Bitcoin has reached its final, slight resistance point at MVRV before reaching the red zone.
Therefore, investors should remain patient until BTC’s MVRV ratio crosses the red line before the coin starts registering price increases.
Almost there… but not quite yet.#Bitcoin has reached the final, slight resistance point at MVRV before reaching the red zone.
So light that it is barely noticeable!
Nothing has changed here.
Break out of the green and go to red.
Patiently waiting for his arrival!
47 – 49k. pic.twitter.com/qiqALmnV2C
— CryptoCon (@CryptoCon_) December 12, 2023
AMBCrypto then looked at social metrics to better understand what the market expected. It seemed like social volume dropped, indicating popularity was declining.
Negative sentiment around the currency also remained high, as evidenced by the dip in weighted sentiment.
Source: Santiment
The derivatives market looks bearish
AMBCrypto looked at the Bitcoin derivatives market, which once again showed a bearish signal. According to Mint glassBoth BTC’s funding rate and open interest have increased in the recent past.
This meant that futures investors were actively buying BTC while the price remained low, increasing the chances of the trend continuing in the coming days.
Source: Coinglass
Read Bitcoins [BTC] Price prediction 2023-24
Looking at BTC’s daily chart, AMBCrypto found even more bearish indicators. Strikingly, the MACD showed a clear bearish crossover. Moreover, both the Relative Strength Index (RSI) and the Money Flow Index (MFI) recorded a decline.
According to the Bollinger Bands, BTC‘s price entered a less volatile zone. This increased the likelihood of a few more slow days before BTC kicks off another bull rally.
Source: TradingView