Bitcoin [BTC] Traders need to sit back and not expect short-term gains because…

The price movement of Bitcoin [BTC] hasn’t been to the delight of its investors lately. BTC has only fallen into the red since a $25,000 hit on Aug. 15 that sent investors cheering.

While it consolidated around $24,000 by Aug. 17, the past two days have been worse as BTC price remained at $21,290 at press time. Per CoinMarketCap, BTC had lost over 13% of its value in the past seven days. However, the records showed that over 60% of this loss occurred between August 18 and the time of writing this article.

Get ready for adversity

While investors might hope that the bottom is near, BTC’s current momentum might think otherwise. This valuation is after Ghoddusifar, a CryptoQuant Analyst. According to the analysis, there is a possibility that BTC could fall another 30% from its current level.

Why is that happend? Ghoddusifar mentioned that the BTC Relative Strength Index (RSI) has already broken. He added that there have been four bearish flag patterns since the start of the downturn and if another one emerges, it could result in another 30% drop in price.

A look at the four-hour chart may have confirmed that the analyst’s predictions might be valid. Recent momentum indicated that BTC faced extremely high volatility as the Bollinger Bands (BB) continued to expand as the price continued to fall. Additionally, the RSI is at an incredibly oversold level, reading 25.62 at press time. Despite the decline, the RSI showed no sign of a recovery to accommodate buyers.

Source: TradingView

The Directional Movement Index (DMI) also shared this assessment. The BTC/USDT chart showed that the DMI favored the sellers as the -DMI (red) at 33.83 was well above the +DMI (green) at 9.19. BTC investors might have wished the direction was weak, but the Average Directional Index (ADX) showed a strong move in favor of the reds.

On-Chain Metrics

On-chain data platform Santiment showed that the Market Value to Realized Value (MVRV) ratio was not in a good position for investors to take profits. With the 30-day MVRV ratio at -7.1%, most BTC investors selling at the current price could risk selling at a massive loss.

Despite clear bearish signs, BTC volume surged. In the past 24 hours, it is up 14.27% to $38.37 billion.

Source: Santiment

Comparing the status of on-chain metrics to Ghodduisfar’s prediction, resting on near-term earnings expectations could be a wise decision for BTC investors as a 30% drop doesn’t seem impossible.

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