2024-04-05 11:08:29
- Weighted BTC sentiment has been negative for the past three weeks.
- Other on-chain indicators hint at the possibility of a further price drop below $66,000.
As bitcoins [BTC] extends its weekly loss by another 4%, its weighted sentiment continues its bearish trend, according to Santiment data.
In a post on X (formerly Twitter), Santiment noted that weighted BTC sentiment has been negative for the past three weeks.
The beginning of this bearish trend, which occurred on March 14, coincided with the price of the coin falling from its all-time high of $73,750. Exchanging hands at $66,572 at the time of this publication, the price of BTC has since fallen by 10%.
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😱 The crowd’s feeling towards #Bitcoin
y #crypto Markets overall have faltered since the big correction three weeks ago. Even with the $ BTC Halving now, just 2 weeks away, reflects traders’ sentiment. #FUD y #osuno Expectations.
With prices bouncing up to $69,000… pic.twitter.com/DYs5RYNR95
– Sentiment (@santimentfeed) April 5, 2024
Using historical precedents, Santiment added that the price of BTC often “moves (in) the opposite direction to crowd expectations.”
During periods where the market hits euphoric highs and expects a continued rally, the price of BTC retraces. Conversely, when sentiment weakens and the market expects further declines, the BTC price is known to begin an uptrend.
This pattern has manifested itself even in recent times.
More decline in the short term?
On April 4, BTC price briefly rose above the $69,000 price level before retreating to the $66,500 region. With new resistance formed at $69,000, on-chain data suggests the possibility of a further drop in the value of the leading cryptocurrency in the near term.
First, the currency’s bid-sell ratio assessed on a 30-day simple moving average (SMA) fell below the zero line on March 8, foreshadowing the price decline that began on March 14.
The taker’s bid-sell ratio is a metric that measures the relationship between buying volume and selling volume in the futures market for an asset. A value greater than 1 indicates more buying volume than selling volume, while a value less than 1 indicates more selling volume than buying volume.
Since March 8, the value of the BTC buyer bid-sell ratio has been less than 1. The constant decline of this metric means that there are more sellers than buyers among those executing immediate trades in the BTC market.
This is expected to continue as long as sentiment remains bearish, putting downward pressure on the price of the coin.
Furthermore, in a recent reportCryptoQuant pseudonymous analyst Tugbachain found that BTC’s NVT Golden Cross closed March with a sell signal.
This indicator compares the coin’s 30-day moving average of the network value to transactions (NVT) ratio with its 10-day moving average.
File Bitcoins [BTC] Price prediction 2024-25
Generates a long signal when it returns a value less than 1.6. On the contrary, when the value is greater than 2.2, it is taken as a signal to enter short positions.
According to Tugbachain:
“At the end of March, with the price of Bitcoin around $71,000, the NVT value reaching levels of ‘3.17’ served as an indicator that a local peak was being reached.”
Next: Ethereum: Can it overcome the SEC’s “security” label? JP Morgan says…
This is an automatic translation of our English version.
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#Bitcoin #BTC #Price #Predictions #Wrong
