Bitcoin, again, went on a steep downtrend on 18 August after seeing steady uptick following its massive decline in June. In fact, for a brief while, the king coin also managed to cross the $24,000-mark, which gave hope to investors for a further surge before moving south.
At the time of writing, BTC was trading at $21,119.65 with a market capitalization of $403,966,011,914. However, before panic selling, investors might look at some metrics. Especially since some data sets might suggest this is a good time to accumulate BTC.
What does the data tell us?
A look at the Hash Ribbon’s data suggested that there may be a great buying opportunity for buyers as the 30-day MA crossed the 60-day MA. When the 30d MA passes over the 60d MA, the Hash Ribbon signals that the worst of the miners’ surrender is over. This is a positive market indicator, one 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 falling by a further 30%. In light of what the Hash Ribbon tells us, it’s worth looking at some metrics to assess whether the prediction can be true.
Consider this – Bitcoin depreciated by 15% over the last seven days. On the contrary, a massive spike in volume was noted, indicating liquidations. The Total Transfer Volume to Exchanges of Bitcoin also fell along with the price, further underlining the operation of a bearish market.
Source: Glassnode
The total supply in loss also moved north as it hiked from 6,825,471 on 15 August to nearly 8,720,069, marking this month’s highest on 19 August.
Source: Glassnode
Finally, BTC’s 4-hour chart too flashed a similar picture as the Exponential Moving Average (EMA) Ribbon pointed to a bearish upper hand in the market. The 55-day EMA was well above the 20-day EMA – Something that suggested a further decline in BTC’s price over the coming days.
All these datasets complement Ghoddusifar’s assessment of a further drop in price. Therefore, investors should think twice before making a sell call as the metrics do seem to suggest a good buying market.
Source: BTC/USDT, TradingView
Worth pointing out, however, that while most data points indicated a bear market, a closer look at some indicators implied the opposite. A bullish crossover happened on the MACD and that might lead to a price uptick in the next few days.
Moreover, the RSI also highlighted some bullish movement as it bounced back from the oversold zone and was moving towards the neutral zone.
