As Bitcoin price stagnates, what’s next for its prediction?
Journalist
Posted:
- Bitcoin sell and buy pressure remained relatively low at press time.
- BTC’s price dropped by 4% in the last seven days, and indicators looked bearish.
Bitcoin [BTC] has not displayed a remarkable performance over the last week, as its weekly chart was in the red. According to CoinMarketCap, BTC was down by nearly 4% in the last seven days.
At the time of writing, BTC was trading at $41,909.77 with a market capitalization of over $820 billion.
Investors are not selling Bitcoin
However, despite the bearish price action, investors at large seemed confident in the coin, as shown in their reluctance to sell. Likewise, Willy Woo, a popular crypto analyst, recently posted a tweet highlighting an important metric.
#Bitcoin investors are waiting for higher prices, presently unwilling to sell.
SOPR tracks the profit of coins when they sell to new investors. It climbed while price dropped, for this to happen only investors at signficant profit are selling, more recent investors are waiting. pic.twitter.com/Z18W3V36sV
— Willy Woo (@woonomic) December 16, 2023
He used BTC’s SORP, which tracks the profit of coins when they are sold to new investors. As per his analysis, BTC’s investors seemed to be waiting for higher prices, as shown by their unwillingness to sell.
To double-check whether investors are holding, AMBCrypto examined other metrics.
As per our analysis, Bitcoin’s Supply on Exchanges and Supply outside of Exchanges were closely knit, meaning that there was neither much selling pressure nor buying pressure at the time of the report.
Bitcoin’s velocity also witnessed a drop, meaning that fewer coins had been transferred in a fixed time frame.
Source: Santiment
Our check on CryptoQuant’s data also revealed that BTC’s Binary CDD was green, which meant that the long-term holders’ movement in the last seven days was lower than average, showing their willingness to hold.
BTC’s daily transactions were also low in the last 24 hours.
Source: CryptoQuant
Will investors’ confidence reflect on BTC’s chart soon?
AMBCrypto’s look at BTC’s liquidation levels revealed that the coin has not witnessed massive sell-offs beneath its current value in the recent past. Therefore, the possibility of a trend reversal cannot be ruled out yet.
If it manages to gain bullish momentum, Bitcoin will face a strong resistance near $43,600.
Source: Hyblock Capital
Another positive metric was Bitcoin’s Fear and Greed Index. As per Glassnode’s chart, BTC’s fear and green index were declining and, at press time, had a value of 67.
Read Bitcoin’s [BTC] Price Prediction 2023-24
When the metric drops, it suggests that it is entering a “fear” phase, which generally hints at a trend reversal.
Source: Glassnode
However, the MACD displayed a clear bearish crossover on Bitcoin’s daily chart. Its Money Flow Index (MFI) also registered a downtick, which could result in a further drop in the king of cryptos’ price.
Source: TradingView
