Bitcoin, once more, went on a steep downtrend on 18 August after seeing regular uptick following its large decline in June. Actually, for a short whereas, the king coin additionally managed to cross the $24,000-mark, which gave hope to traders for an additional surge earlier than shifting south.
On the time of writing, BTC was buying and selling at $21,119.65 with a market capitalization of $403,966,011,914. Nevertheless, earlier than panic promoting, traders may take a look at some metrics. Particularly since some knowledge units may recommend this can be a good time to build up BTC.
What does the info inform us?
A take a look at the Hash Ribbon’s knowledge steered that there could also be an awesome shopping for alternative for patrons because the 30-day MA crossed the 60-day MA. When the 30d MA passes over the 60d MA, the Hash Ribbon alerts that the worst of the miners’ give up is over. It is a constructive market indicator, one encouraging traders to purchase extra.
The crossover in query started final week after the inexperienced line gained sufficient momentum to overhaul the blue line.
Supply: Glassnode
That is the present state of affairs
Ghoddusifar, a CryptoQuant analyst, just lately expanded on the potential for BTC falling by an additional 30%. In mild of what the Hash Ribbon tells us, it’s value taking a look at some metrics to evaluate whether or not the prediction will be true.
Think about this – Bitcoin depreciated by 15% over the past seven days. Quite the opposite, a large spike in quantity was famous, indicating liquidations. The Whole Switch Quantity to Exchanges of Bitcoin additionally fell together with the worth, additional underlining the operation of a bearish market.
Supply: Glassnode
The whole provide in loss additionally moved north because it hiked from 6,825,471 on 15 August to just about 8,720,069, marking this month’s highest on 19 August.
Supply: Glassnode
Lastly, BTC’s 4-hour chart too flashed an identical image because the Exponential Shifting Common (EMA) Ribbon pointed to a bearish higher hand available in the market. The 55-day EMA was effectively above the 20-day EMA – One thing that steered an additional decline in BTC’s value over the approaching days.
All these datasets complement Ghoddusifar’s evaluation of an additional drop in value. Due to this fact, traders ought to suppose twice earlier than making a promote name because the metrics do appear to recommend shopping for market.
Supply: BTC/USDT, TradingView
Price mentioning, nonetheless, that while most knowledge factors indicated a bear market, a more in-depth take a look at some indicators implied the other. A bullish crossover occurred on the MACD and that may result in a value uptick within the subsequent few days.
Furthermore, the RSI additionally highlighted some bullish motion because it bounced again from the oversold zone and was shifting in direction of the impartial zone.