King of Cryptocurrency, Bitcoin [BTC]It suffered a massive drop in price in June, when the crypto market crashed, hitting a 2022 low of $18,154.
However, soon after, the coin saw a steady rise for the next two months. BTC also managed to cross the $24,000 mark, which is expected to trigger a massive bull run soon.
But recent developments may see a change in the situation.
At the time of writing, BTC was trading below the $24,000 mark at $23,491, with a market cap of $449,275,521,406.
what’s going on?
Crypto Whale, a Chicago-based investor with 533.8k followers on Twitter, recently tweeted that it expects the bitcoin market to crash. According to the Twitter handle, a bearish divergence has formed on the chart of BTC, indicating that its price is about to decline. While many had differing opinions, most Twitter users agreed with Crypto Whale.But, interestingly, some metrics shed the exact opposite of what crypto whales predicted. Data from Glassnode shows bitcoin balances on exchanges hit a four-year low, reflecting investor confidence in HODL. However, the number of bitcoin addresses with 0.01 balances, which was trending steadily upward, recently saw a decline. To add to the above figures, last week, the percentage supply of bitcoin gains also began to increase, giving investors hope. BTC’s percentage supply in gains rose to a three-month high of 62.03% on 12 August. Well, a look at the charts of BTC shows that after being on a gradual uptrend, the coin was following selling pressure after August 15 as it was unable to break its resistance at the $24,000 level. Several indicators, including the relative strength index (RSI), Chaikin money flow (CMF), and the exponential moving average (EMA) ribbon, suggested bearish market conditions, raising the possibility of a decline in the coming week. While the price of bitcoin increased during the past week, a bearish divergence was observed on the CMF (Blue Trend Line). Moreover, a bearish wedge pattern formed on the chart of BTC, indicating a decline. Therefore, traders need to be careful before taking any action considering the charts and on-chain metrics.#bitcoin impending accident pic.twitter.com/W4eiAnLtkT
— Crypto Whale (@CryptoWhale) 17 August 2022