Over the previous couple of weeks, Bitcoin [BTC] has maintained a stable place over shorts. In truth, this energy was sufficient to ship BTC to $24,000 and hold it above $20,000 for many of July.
Issues may need, nonetheless, taken a brand new flip. CryptoQuant analyst Ghoddusifar believes that BTC’s worth may decrease due to the promoting antics of short-term traders. In response to a weblog put up dated 6 August, the analyst defined that there’s a risk of a downtrend. He stated,
“We see a adverse divergence within the RSI and MACD oscillators. These may very well be a pre-signal of the potential for wedge breakdown”
So, is there a correlation between BTC’s ongoing momentum and the analyst’s solutions?
Projections in alignment
Effectively, primarily based on the BTC/USDT chart, the analyst may very well be proper. At press time, the Shifting Common Convergence Divergence (MACD) underlined that sellers have been in management with the shorts’ energy (orange) barely above the longs (blue).
The implications of this momentum indicator additionally appeared to agree together with his declare of a adverse divergence.
The Relative Power Index (RSI) will also be seen towing a downward momentum and consolidating between the 50-level and beneath it. With the indicator struggling to rise above, it may as nicely imply that the sellers are taking out earnings or counting their losses.
Even the On-Steadiness-Quantity (OBV) appeared to be heading south. Merely put, BTC was struggling to face up to the promoting strain, on the time of writing.
What’s the on-chain outlook
During the last 24 hours, BTC has been shifting between the $22,500 and $23,500 worth ranges. Nevertheless, bears appear to be intensifying their efforts for a serious drawdown.
In truth, at press time, Santiment information revealed that there was an increase in BTC whales’ promoting strain. This led to BTC dropping its momentum on the charts.
Additionally, additional strain may drive BTC to extra volatility on the expense of short-term bulls. There are indications of a market shift if sellers maintain the momentum going into the weekend. Potential investor profit-taking is also on the rise after a hike in accumulation and buying and selling quantity in the course of the week.
With all of this taking place, the actions of consumers may want to extend exponentially to counter the present state of the market. Having stated that, BTC has remained in a impartial place during the last 24 hours.
At press time, the change on the charts was nearly negligible as per CoinMarketCap, with the crypto valued at $23,199. This confusion about an uptick or a fall could affirm that the promoting strain on BTC has elevated.