- BTC was surrounded by bears as its RSI continued to plummet at the time of writing.
- Some whales added to the selling pressure from September 11th onwards.
Bitcoin [BTC]has managed to hold the price level of $25,000 for most of the last seven days. With no significant buying pressure and increased selling pressure, BTC was at $25,142 at the time of writing. According to data from CoinMarketCap, the king of cryptocurrencies has fallen by almost 2.40% in the last seven days and by 2.80% in the last 24 hours.
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Despite the discouraging performance, BTC holders had reason to celebrate. According to data shared by IntoTheBlock, the price drop had no impact on the number of Bitcoin transactions.
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Bitcoin transactions are not slowing down. Despite a significant price drop in recent months, Bitcoin is processing more transactions on average than when it was priced at $30,000 in July
🔗https://t.co/n7lvDvAgct pic.twitter.com/b0ctlNqrdV
– IntoTheBlock (@intotheblock) September 11, 2023
According to the update published on
Is there really reason to celebrate?
While the fact that the Bitcoin network was processing higher transactions was certainly celebratory news, the impact of the news on BTC was not apparent. This was because BTC was not in a pleasing state at the time of writing. The Relative Strength Index (RSI) was at 32.59 at press time. However, its position clearly indicated further southward movement.
Such a move indicated the heavy selling pressure that surrounded BTC. Furthermore, although the Moving Average Convergence Divergence (MACD) showed the MACD line above the signal line, it did not indicate a bullish outcome. This was due to the proximity between the signal line and the MACD line.
An increase in bearish momentum would result in a bearish crossover, albeit above the zero line.
Source: TradingView
A falling Money Flow Index (MFI) reinforced the assumption of a bearish stance for BTC.
The trouble continues…
Accompanying the problems on the price front, BTC metrics showed no signs of a possible recovery in the situation. Data from on-chain intelligence platform Santiment suggests that the total number of BTC holders has seen a decline. That number stood at 49.6 million at the time of writing.
Read Bitcoins [BTC] Price prediction 2023-2024
Additionally, BTC’s weighted sentiment saw a significant decline as shown in the chart below. An interesting development was observed in BTC volume. A drop in BTC price amid increasing volume could be seen as a bearish signal as it indicates selling pressure around the King Coin.
Source: Santiment
The selling pressure surrounding BTC was confirmed as certain whales were observed reducing their balances. Whales with 100-1,000 BTC were seen selling their holdings, as shown in the chart below. Furthermore, whales with 10,000 to 100,000 BTC also decided to cut some losses.
Source: Santiment
Adding to the ongoing pessimistic sentiment, a tweet from glassnodealerts said that the number of lost BTC addresses had reached an eight-month high.
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📈 #Bitcoin $BTC Number of Addresses in Loss (7d MA) just hit an 8-month high of 19,505,397.244
The previous 8-month high of 19,502,221.804 was observed on September 7, 2023
View metric:https://t.co/s2ciFMlDcX pic.twitter.com/SBUTHBmBnM
– Glassnode Alerts (@glassnodealerts) September 11, 2023
While BTC appeared to be completely under the influence of the bears at the time of publication, the good news was that BTC would see a trend reversal after hitting a market bottom. And given BTC’s continued performance, it could move into oversold territory in the next few days.
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