Bitcoin [BTC] to slide under $20k soon? These metrics suggest…

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  • BTC’s NVT gold­en cross reached 8.49, sug­gest­ing a pos­si­ble mar­ket top. 
  • Most of the met­rics were bear­ish, but whale accu­mu­la­tion increased. 

Bit­coin [BTC] man­aged to stay above $25,000 for a few days, which gave investors a rea­son to cel­e­brate. As per Coin­Mar­ket­Cap, BTC was up by over 5% in the last 24 hours. 

At the time of writ­ing, it was trad­ing at $25,999.75 with a mar­ket cap­i­tal­iza­tion of over $502 bil­lion. How­ev­er, the cel­e­bra­tion might be near­ing an end as BTC might be sub­ject­ed to yet anoth­er price correction. 

Read Bitcoin’s [BTC] Price Pre­dic­tion 2023–24

Sell pressure to increase soon?

Onchain Edge, an author, and ana­lyst at Cryp­to­Quant, recent­ly pub­lished an analy­sis that sug­gest­ed the pos­si­bil­i­ty of a price correction. 

As per the post, BTC’s Net­work Val­ue to Trans­ac­tion (NVT) gold­en cross reached 8.49. This indi­cat­ed a pos­si­ble mar­ket top, which can result in increased sell­ing pressure. 

There­fore, BTC’s price might plum­met in the near term. To clear the air, the NVT Ratio describes the rela­tion­ship between mar­ket cap and trans­fer vol­ume. The NVT Gold­en Cross indi­ca­tor helps traders decide whether to buy or sell a cryp­tocur­ren­cy. 

Source: Cryp­to­Quant

Sell­ing pres­sure might already have increased as CryptoQuant’s data revealed that BTC’s exchange reserve was ris­ing. Not only that, but BTC’s aSORP was red, sug­gest­ing that more investors were sell­ing at a profit.

Thus, increas­ing the chances of a trend rever­sal. As per Santiment’s chart, BTC’s sup­ply on exchanges increased while its sup­ply out­side of exchanges went down, which was by and large a bear­ish signal. 

Pos­i­tive sen­ti­ments around BTC also seemed to have declined over the last few days, which was evi­dent from the weight­ed sen­ti­ment metric. 

Source: San­ti­ment

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Investors should not panic yet!

Despite all the neg­a­tive sig­nals, things might con­tin­ue to remain in BTC’s favor in the near term. San­ti­ment revealed that BTC recent­ly wit­nessed the largest whale trans­ac­tion of the year. 40,157 BTC were sent to a whale address recent­ly, which ear­li­er held a high of 143,310 BTC. 

Well, this whale activ­i­ty sug­gest­ed that the big play­ers still had faith in BTC as they con­tin­ued to increase accu­mu­la­tion. On the oth­er hand, Glassnode alerts point­ed out that BTC’s Exchange Out­flow Vol­ume (7d MA) just reached a 3‑month high of $49,869,358.36, which was a bull­ish development. 

BTC’s fund­ing rate was also high, reflect­ing its demand in the deriv­a­tives mar­ket. Bitcoin’s tak­er buy-sell ratio sug­gest­ed that buy­ing sen­ti­ment was still dom­i­nant in the market. 

The sit­u­a­tion seemed ambigu­ous, there­fore, which way BTC’s price heads in the future is a ques­tion that only time can answer. 

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