- Bearish sentiment remains dominant across Bitcoin’s market
- A few metrics and whale actions could be key to a price reversal
Bitcoin’s [BTC] price has once again fallen below $64k, sparking fear about a further decline on the charts. Now, though there are several factors at play, a possible reason behind the aforementioned price correction could be whales’ latest actions.
Bitcoin whales take profit
Market bears stepped up their game in the last 24 hours as BTC’s price sank on the charts. According to CoinMarketCap, BTC was down by over 2% at press time, with the crypto trading at $63,042 with a market capitalization of over $1.24 trillion.
This decline also had an impact on the cryptocurrency’s social metrics. In fact, AMBCrypto’s analysis of Santiment’s data revealed that BTC’s weighted sentiment went into the negative zone – A sign that bearish sentiment retained dominance in the market.
Source: Santiment
Additionally, Phi Deltalytics, an author and analyst at CryptoQuant, recently shared an analysis highlighting an interesting development, one which could have been the reason behind BTC’s latest price drop.
As per the analysis, whale Bitcoin exchange inflows recorded a notable surge.
The hike accounted for a substantial portion of overall exchange inflows, indicating significant profit-taking by whales amidst the 2024 Bitcoin bull run. If historical data is to be considered, whenever this metric has risen in the past, it has been followed by price corrections on multiple occasions.
Source: CryptoQuant
Will Bitcoin fall even further?
Since BTC’s price has already turned bearish, AMBCrypto checked its metrics to see whether a further downtrend is bound to happen. As per CryptoQuant’s data, buying sentiment has been weak among U.S and Korean investors, with Bitcoin’s Coinbase and Korea Premiums red too.
Here, the good news is that after a spike on 24 April, BTC’s exchange reserves started to decline – A sign that selling pressure on the king of cryptos was declining.
Source: CryptoQuant
AMBCrypto’s observation of Glassnode’s data pointed out yet another bullish signal.
BTC’s Network To Value (NVT) ratio registered a sharp downtick. For starters, the NVT ratio is computed by dividing the market cap by the transferred on-chain volume measured in USD.
Source: Glassnode
Whenever the metric drops, it suggests that an asset is undervalued. On this occasion, it indicated that the chances of BTC’s price going up were high.
In fact, AMBCrypto recently reported that a well-trained AI model predicted BTC’s price to touch $77K within the next 30 days.
Read Bitcoin [BTC] Price Prediction 2024 -2025
AMBCrypto then analyzed Bitcoin’s daily chart to better understand whether an uptrend is likely to happen. BTC’s Money Flow Index (MFI) registered an uptick and was headed further above the neutral mark. Its Chaikin Money Flow (CMF) was also resting well above the neutral mark of 0.
These indicators suggested that BTC’s price chart might soon turn green again. However, the Relative Strength Index (RSI) looked bearish as it went south.
Source: TradingView