- Bearish Sentiment Remains Dominant Across the Bitcoin Market
- Some whale metrics and actions could be key to a price reversal
Bitcoin [BTC] The price has fallen back below $64,000, raising fears of a further drop on the charts. Now, although there are several factors at play, one possible reason behind the aforementioned price correction could be the latest actions of the whales.
Bitcoin whales make profits
Market bears stepped up their game over the past 24 hours as BTC price tanked on the charts. According CoinMarketCapBTC is down more than 2% at press time, with the cryptocurrency trading at $63,042 with a market capitalization of over $1.24 trillion.
This drop also had an impact on the cryptocurrency’s social metrics. In fact, AMBCrypto’s analysis of Santiment data revealed that BTC’s weighted sentiment entered the negative zone, a sign that bearish sentiment maintained dominance in the market.
Additionally, Phi Deltalytics, author and CryptoQuant analyst, recently shared a analysis highlighting an interesting development, which could have been the reason behind the latest BTC price drop.
According to the analysis, Bitcoin whale exchange inflows recorded a notable increase.
The rise represented a substantial portion of the total currency inflows, indicating significant profit-taking by whales amid the Bitcoin bull run in 2024. Considering historical data, whenever this metric has risen In the past, it has been followed by price corrections on multiple occasions.
Will Bitcoin fall further?
Since BTC price has already turned bearish, AMBCrypto checked its metrics to see if a new downtrend is likely. According to CryptoQuant dataBuying sentiment has been weak among US and Korean investors, and Bitcoin’s Coinbase and Korea Premiums are also in the red.
The good news here is that after a spike on April 24, BTC currency reserves began to decline, a sign that the selling pressure on the cryptocurrency king was easing.
AMBCrypto’s observation of Glassnode data pointed to another bullish signal.
BTC’s network-to-value ratio (NVT) recorded a sharp drop. To start, the NVT index is calculated by dividing the market capitalization by the volume transferred on chain measured in USD.
Every time the metric drops, it suggests that an asset is undervalued. On this occasion, he indicated that the chances of the BTC price rising were high.
In fact, AMBCrypto recently reported that a well-trained AI model predicted that the price of BTC would reach $77,000 in the next 30 days.
Read bitcoin [BTC] Price prediction 2024-2025
AMBCrypto then analyzed Bitcoin’s daily chart to better understand if an uptrend is likely to occur. The BTC Money Flow Index (MFI) recorded a rally and headed further above the neutral mark. His Chaikin Money Flow (CMF) was also well above the neutral mark of 0.
These indicators suggested that the BTC price chart could soon turn green again. However, the Relative Strength Index (RSI) appeared bearish as it moved lower.
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