Bitcoin [BTC]: Investors should consider these factors before making a decision

Bitcoins (BTC)’s performance over the past month hasn’t made anyone happy as BTC hasn’t seen many bullish ticks on the charts. Nevertheless, opinions differ. While some believe a price spike could be imminent, others believe the cryptocurrency could continue falling down the charts.

Interestingly, looking at some analytics and market indicators can give us a better picture of the overall situation. At press time, BTC is trading at $19,078 amid a 5% depreciation on the weekly charts.

Darker days ahead?

Amidst all the diverse speculation on social media, several analysts have predicted that the price of BTC could drop further in the coming days. For example, MAC_D, an analyst and author at CryptoQuant, recently published one valuation with reference to Bitcoin. In his analysis, he pointed out that on September 13, 11,900 bitcoins entered Coinbase. Later, 31,200 bitcoins were transferred from Coinbase to derivatives exchanges just before bitcoin’s price fell drastically on September 13.

Source: CryptoQuant

He explained,

“BTC stocks on the futures exchange surged just prior to BTC dumping and whales appear to have deliberately opened short positions on the futures exchange and lowered BTC prices.”

The growing number of BTC short positions on derivatives exchanges suggests further declines in BTC price in the coming days.

Mac, a popular crypto influencer, also offered his take on what to expect from BTC. According to the analyst, the price of the crypto could hit $20,000 next week and then drop sharply, perhaps dropping as low as $17,000 on the charts.

I can see a surge to $20,000-$20,500 for $BTC and $1,500 for $ETH early next week before a crash to $17,000

Lots of blood will be shed on both sides, if you don’t feel you have an advantage stay on the sidelines.

Let’s see how it plays

— Mac 🐺 (@MacnBTC) September 24, 2022

In-game metrics

While the aforementioned analysis and prediction pointed to darker days for the king of all cryptos, some metrics suggested otherwise.

For example, BTC exchange inflows dropped significantly over the past week, which is a bullish signal. Similarly, BTC’s MVRV ratio also saw an increase, indicating a possible price surge in the coming days.

Source: Santiment

Interestingly the The number of active bitcoin addresses with non-zero balances has increased over the past seven days. This shows investor confidence in the coin. However, at the time of writing, the number seemed to be trending towards a decline.

Source: Glassnode

Considering all the data points, nothing can be said with certainty. Only time will tell what is in store for BTC in the coming weeks.

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