Bitcoin falls below $60K again
The crypto market saw a fleeting surge of hope as Bitcoin momentarily scaled back to $61k in the last 24 hours. Nevertheless, this ascent was short-lived as the cryptocurrency experienced a swift reversal in fortune.
Rallying with bullish fervor, the premier cryptocurrency breached the $61k mark on August 20th. However, bearish dominion promptly countered this uptick.
Per CoinMarketCap, within a day, BTC saw its value retract by over 2.5%. At the moment of this analysis, the digital currency stood at $59,378.99, boasting a market cap exceeding $1.17 trillion.
This downturn in price didn’t catch observers by surprise.
Ali, a renowned figure in cryptocurrency analysis, disclosed through a tweet that BTC’s TD sequential had triggered a sell indicator. Following this revelation, a downturn in Bitcoin’s value was observed.
CryptoQuant's metrics unveiled several potential contributors to Bitcoin’s decline. There was a notable uptick in BTC’s exchange reserve, signaling an amplified intent to sell.
This intent was further substantiated by the growth in Bitcoin’s exchange netflow, indicating elevated selling activity.
Specifically, BTC observed a significant accumulation of net deposits on exchanges relative to the 7-day norm, suggesting escalating selling pressure. Despite this, the Coinbase Premium remained positive, indicating a strong purchasing trend amongst American investors.
Glassnode’s insights sought to gauge the persistence of this bearish wave. They noticed a considerable decrease in Bitcoin’s NVT ratio.
A diminished NVT ratio implies that the asset is potentially undervalued, which could be a precursor to a price rally. The NVT ratio is derived by dividing the market capitalization by the on-chain volume transacted in USD.
Conversely, the derivatives landscape presented challenges for bulls. The taker buy/sell ratio of BTC shifted negatively, indicating a prevailing selling mood within the futures arena.
The MACD indicator showcased a bullish crossover. Additionally, Bitcoin’s Relative Strength Index (RSI) was edging towards neutrality – a sign many interpret as bullish. Yet, the Chaikin Money Flow (CMF) metric dipped, adopting a bearish stance, as evidenced by a downturn.
