In recent days, a wave of liquidation in the cryptocurrency market undermined the confidence of investors, leaving many traders in suspense. The increasing pressure of the bears forces many bitcoin holders (BTC) to get rid of coins.
We figure out what is happening in the Bitcoin market (BTC) and what to expect from the price of cryptocurrency.
Long -term holders lose confidence
The Coin Days Destroyed (CDD) indicator for bitcoin entering the exchange has reached the maximum in the last 30 days.
According to Cryptoquant, now it is 1.79 million, increasing by more than 850% since the beginning of April. This sharp growth indicates that coins that have been stored for a long time are now transferred to exchanges – a classic sign of possible sales.
This trend is important because this group of investors usually crowd in any market conditions. Therefore, their actions indicate a decrease in confidence and may indicate a further drop in price.
A bearish trend is observed in the derivatives market. The Taker Buy-Sell Ratio coefficient for BTC fell below the unit, which indicates the prevalence of sales over purchases in futures and unlimited contracts.
This indicates that derivatives traders expect further decline, increasing the current bear’s mood.
Buying activity weakens
The market tried to recover a little over the past hours, and the total capitalization of the cryptoine has increased by $ 48 billion per day. This surge in activity raised the price of bitcoin by 4% over the past 24 hours.
However, the Chaikin Money Flow (CMF) indicator gives an alarming signal, forming a bear divergence. At the time of publication, CMF sank below zero to −0.15 and continues to decline.
Bear divergence occurs when the price of the asset grows and CMF falls. This indicates a weakening of purchasing pressure, despite the increase in price. If this trend is preserved, Bitcoin may lose recent achievements and sink to $ 74,389.
If the demand for bitcoin increases again, its price can continue to increase and reach $ 80,776.
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Source: Cryptocurrency
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