Over the previous couple of weeks, Bitcoin [BTC] has maintained a stable place over shorts. The truth is, this energy was sufficient to ship BTC to $24,000 and preserve it above $20,000 for many of July.
Issues might 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. Based on a weblog publish dated 6 August, the analyst defined that there’s a risk of a downtrend. He mentioned,
“We see a negative divergence in the RSI and MACD oscillators. These could be a pre-signal of the possibility of wedge breakdown”
So, is there a correlation between BTC’s ongoing momentum and the analyst’s recommendations?
Projections in alignment
Effectively, primarily based on the BTC/USDT chart, the analyst could possibly 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 unfavorable divergence.
The Relative Power Index (RSI) may 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 properly imply that the sellers are taking out income or counting their losses.
Even the On-Stability-Quantity (OBV) gave the impression 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 transferring between the $22,500 and $23,500 worth ranges. Nonetheless, bears appear to be intensifying their efforts for a serious drawdown.
The truth is, at press time, Santiment knowledge 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 through the week.
With all of this occurring, the actions of consumers would possibly want to extend exponentially to counter the present state of the market. Having mentioned that, BTC has remained in a impartial place over the past 24 hours.
At press time, the change on the charts was virtually negligible as per CoinMarketCap, with the crypto valued at $23,199. This confusion about an uptick or a fall could verify that the promoting strain on BTC has elevated.