Over the previous few weeks, Bitcoin [BTC] has maintained a stable place over shorts. In actual fact, this power was sufficient to ship BTC to $24,000 and maintain it above $20,000 for many of July.
Issues may need, nevertheless, taken a brand new flip. CryptoQuant analyst Ghoddusifar believes that BTC’s value may decrease due to the promoting antics of short-term traders. In line with a weblog submit dated 6 August, the analyst defined that there’s a risk of a downtrend. He mentioned,
“We see a adverse divergence within the RSI and MACD oscillators. These might be a pre-signal of the potential for wedge breakdown”
So, is there a correlation between BTC’s ongoing momentum and the analyst’s ideas?
Projections in alignment
Properly, based mostly on the BTC/USDT chart, the analyst might be proper. At press time, the Transferring Common Convergence Divergence (MACD) underlined that sellers have been in management with the shorts’ power (orange) barely above the longs (blue).
The implications of this momentum indicator additionally appeared to agree along with his declare of a adverse divergence.
The Relative Power Index (RSI) may also be seen towing a downward momentum and consolidating between the 50-level and under it. With the indicator struggling to rise above, it may as properly imply that the sellers are taking out earnings or counting their losses.
Even the On-Steadiness-Quantity (OBV) appeared to be heading south. Merely put, BTC was struggling to face up to the promoting stress, 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 value ranges. Nevertheless, bears appear to be intensifying their efforts for a significant drawdown.
In actual fact, at press time, Santiment information revealed that there was an increase in BTC whales’ promoting stress. This led to BTC dropping its momentum on the charts.
Additionally, additional stress 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. Attainable investor profit-taking may be 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 stress on BTC has elevated.