After seeing a steady rise after a massive drop in June, Bitcoin again headed for a sharp decline on 18 August. In fact, for a while, King Coin even managed to cross the $24,000 mark, giving investors hope for further upside before heading south.
At the time of writing, BTC was trading at $21,119.65 with a market cap of $403,966,011,914. However, before the panic sell-off, investors can watch a few metrics. Especially since some data sets may suggest that this is a good time to deposit BTC.
What does the data tell us?
A look at the Hash Ribbon data suggests that there could be a huge buying opportunity for buyers as the 30-day MA has crossed the 60-day MA. When the 30d MA crosses above the 60d MA, the hash ribbon signals that the miners’ worst capitulation is over. This is a positive market indicator, encouraging investors to buy more.
The crossover in question began last week when the Green Line gained enough momentum to overtake the Blue Line.
this is the current scenario
Ghodducifer, a Cryptoquant analyst, recently Expansion Feather BTC is likely to drop another 30%. In light of what the hash ribbon tells us, it’s worth a look Some metrics to assess whether a prediction may be true or not.
Consider this – Bitcoin is down 15% in the last seven days. Conversely, a huge jump in volume was observed, indicating liquidation. The overall transfer volume across bitcoin’s exchanges also fell with the price, and underscores a bearish market operation.
The total supply in losses also moved north as it rose to around 8,720,069 from 6,825,471 on August 15, the highest this month on August 19.
eventually, The 4-hours chart of BTC also shows a similar picture with the exponential moving average (EMA) ribbon pointing to a bearish upper hand in the market. The 55-day EMA was well above the 20-day EMA – something that suggests a further downside in BTC price in the coming days.
All these datasets complement Ghodducifer’s assessment of further price declines. Therefore, investors should think twice before making a sell call as the metrics suggest a good buying market.
However, it is worth pointing out that wMost of the data points indicated a bear market, with a closer look at some indicators indicating the opposite. There was a bullish crossover on the MACD and this could push the price higher in the coming days.
Besides, the RSI also highlighted some bullish movement as it bounced back from the oversold zone and headed towards the neutral zone.