The king of cryptocurrency, Bitcoin [BTC], suffered a large plunge in its value in June when the crypto market crashed, marking 2022 lowest of $18,154.
Nonetheless, quickly after, the coin gained a gentle uptrend for the subsequent two months. BTC additionally managed to cross the $24,000 mark, giving hope for a large bull run quickly.
However with latest developments, the scenario could witness a change.
On the time of writing, BTC was buying and selling beneath the $24,000 mark, at $23,491, with a market capitalization of $449,275,521,406.
A Chicago-based investor CryptoWhale with 533.8k followers on Twitter, not too long ago tweeted that it expects a Bitcoin market crash.
Based on the Twitter deal with, a bearish divergence shaped on BTC’s charts, indicating a plunge in its value was across the nook.
Whereas many had completely different opinions, most Twitter customers appeared to agree with CryptoWhale.
— CryptoWhale (@CryptoWhale) August 17, 2022
However, curiously, just a few metrics highlighted simply the alternative of CryptoWhale’s prediction.
Glassnode’s information confirmed that Bitcoin’s stability on exchanges reached a four-year low, indicating traders’ conviction to HODL.
Nonetheless, Bitcoin’s variety of addresses with a stability ≥ 0.01, which was on a continuing uptrend, confirmed a decline recently.
So as to add to the aforementioned information, final week, the share provide of Bitcoin revenue additionally began to extend, giving hope to traders.
BTC’s % provide in revenue reached a three-month excessive of 62.03% on 12 August.
Nicely, a have a look at BTC’s chart confirmed that after being on a gradual uptrend, the coin was following the sell-pressure publish 15 August because it was unable to interrupt its resistance on the $24,000 mark.
A number of indicators, together with the Relative Energy Index (RSI), Chaikin Cash Circulation (CMF), and Exponential Shifting Common (EMA) ribbons, advised bearish market situations, additional growing the potential for a downtrend within the coming week.
Whereas Bitcoin’s value elevated over the past week, a bearish divergence was seen on CMF (blue pattern line).
Furthermore, a bearish wedge sample shaped on BTC’s chart, indicating a downfall. Due to this fact, contemplating the chart and on-chain metrics merchants should be cautious earlier than making any strikes.