- BTC's NVT ratio declined, meaning it was undervalued.
- Some metrics and market indicators looked bearish on Bitcoin.
After crossing the $50,000 mark, Bitcoins [BTC] Momentum slowed again as the value moved sideways. In fact, the price of the king of cryptos has been fluctuating in a range, suggesting that there are still a few days of slow movement ahead.
Bitcoin is slowing down
After rising nearly 30% in the last 30 days, BTC’s price action turned sluggish again. This was evident from the fact that its value changed only slightly in the last few days.
At the time of writing, BTC trade at $50,948.23 with a market cap of over $1 trillion.
News from Coinglass tweet also noted that the price of BTC fluctuated between $52k and $50.5k. These levels also acted as BTC’s resistance and support levels, respectively.
If BTC price manages to break out of the resistance zone, there are high chances of BTC reaching the $55,000 mark.
However, if the opposite happens and BTC falls below its support zone, investors could see further downside. Therefore, to provide more clarity, AMBCrypto reviewed BTC’s on-chain data.
We noticed that BTC's network value to transactions (NVT) ratio has been decreasing over the past few days. When the ratio falls, it suggests that an asset is undervalued, suggesting that there is a possibility of a price increase.
Source: Glassnode
Some other metrics also looked optimistic. For example, according to our analysis from CryptoQuant Data, Bitcoin's foreign exchange reserves declined. This meant that buying pressure was high on the coin.
In addition, there was also a buying mood in the derivatives market, which was evident from the buy/sell ratio of green buyers.
Source: CryptoQuant
Problems persist for Bitcoin
Although the metrics above looked bullish, a few others suggested otherwise, suggesting that BTC's price could just as easily reach its support level in the coming days.
AMBCrypto reported Earlier, BTC could see a short-term price correction as there was a movement of coins from long-term holders (LTHs) to short-term holders (STHs).
The token's binary CDD continued to remain red, meaning that long-term holders' movements over the past seven days have been above average.
His aSORP was also red. This suggested that more investors were selling for a profit. In the middle of a bull market, this can indicate a market top.
Source: CryptoQuant
A look at BTC’s daily chart pointed to further bearish indicators. The MACD showed a bearish crossover.
To read Bitcoins [BTC] Price prediction 2024-25
Both the coin’s Relative Strength Index (RSI) and Money Flow Index (MFI) recorded a decline. These metrics suggest that the probability of a decline in BTC price is high.
Nevertheless, BTC's price remained above its 20-day simple moving average, shown by the Bollinger Bands. This can act as support and help BTC recover.
Source: TradingView
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