Bitcoin [BTC]: Is this really the right jump to take advantage of?

Bitcoin experienced another steep downtrend on Aug. 18 after experiencing a steady uptrend following its massive drop in June. In fact, the king coin also managed to surpass $24,000 for a brief period, giving investors hope for another surge before migrating south.

At the time of writing, BTC is trading at $21,119.65 with a market cap of $403,966,011,914. Before panic selling, however, investors could look at a few metrics. Especially since some data sets might suggest that this is a good time to start accumulating BTC.

What does the data tell us?

Looking at Hash Ribbon data suggested that if the 30-day MA crosses above the 60-day MA, there could be a great buying opportunity for buyers. When the 30-day MA crosses the 60-day MA, the hash ribbon signals that the worst of miner capitulation is over. This is a positive market indicator encouraging investors to buy more.

The crossover in question began last week after the green line gained enough momentum to overtake the blue line.

Source: Glassnode

This is the current scenario

Ghoddusifar, a CryptoQuant analyst, recently expanded on the possibility of BTC dropping another 30%. Given what the Hash Ribbon is telling us, it’s worth a look some metrics to judge if the prediction can be true.

Consider this – Bitcoin has lost 15% in value over the past seven days. On the contrary, a massive increase in volume was noted, indicating liquidations. Total transfer volume to exchanges of bitcoin also fell with the price, further underscoring the functioning of a bearish market.

Source: Glassnode

The total supply of losses also moved north as it rose to nearly 8,720,069 from 6,825,471 on August 15th, marking its highest this month on August 19th.

Source: Glassnode

Finally, BTC’s 4-hour chart also showed a similar picture, as the Exponential Moving Average (EMA) band indicated a bearish upper hand in the market. The 55-day EMA was well above the 20-day EMA – something that suggests further decline in BTC price in the coming days.

All of these sets of data complement Ghoddusifar’s assessment of further price declines. Therefore, investors should think twice before making a sell call as the metrics are pointing to a good buy market.

Source: BTC/USDT, TradingView

However, it is worth mentioning that wWhile most data points pointed to a bear market, a closer look at some indicators implied the opposite. The MACD has seen a bullish crossover which could lead to higher price in the next few days.

Furthermore, the RSI also showed some bullish movement as it recovered from the oversold zone and moved towards the neutral zone.

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