Bitcoin

Is Entering a Downward Trend!

  Bitcoin Is Entering a Downward Trend! Bitcoin is entering a downtrend with a few signs of slowing down. In general, the cryptocurrency market continues to bleed as investors hit the panic button. Key takeaways -Bitcoin stands above the 100-day moving average while investors are on a selling spree. Bitcoin Remains On Thin Support Last week, more than $ 1.25 billion of long BTC positions were liquidated across the board. Despite the explosion, Bitcoin's decline shows no signs of stopping. Losing the 50-day moving average on April 18 as support was a turning point for Bitcoin's uptrend for the first time in seven months. Since then, the flagship of the cryptocurrency, Bitcoin has dropped another 15.30 %. Increased downward pressure on spot markets could be catastrophic as the next major wall of demand is represented by the 200-day moving average of $ 35k. Bitcoin's supply distribution chart adds confidence to the pessimistic outlook. The number of addresses with a thousand to 10 thousand BTC in the last 48 hours fell 0.37 %. Around eight large investors left the network during this time. The recent drop in the number of major investors behind Bitcoin may seem trivial at first glance. However, given that these investors stay between $ 50 million and $ 500 million in BTC, the sudden increase in selling pressure could turn into millions of dollars. Despite the brutal scenario, Market Value to Actual Value (MVRV) shows that Bitcoin is falling into the "Zone of Opportunity".

Bitcoin is entering a downtrend with a few signs of slowing down.

This fundamental index measures the average profit or loss of addresses that bought BTC tokens last month. Every time the 30-day MVRV drops below 0 percent, it tends to follow a bullish impulse as most of the tokens in circulation are lost. The lower the MVRV rate, the higher the subsequent buying pressure. The 30-day MVRV rate hovers at -13.93 %, indicating that Bitcoin is currently below its value. The last time this in-chain metric reached such a low level was mid-March 2020 after Black Thursday, leading to a full price rebound. As long as it continues to hold the 100-day moving average, Bitcoin may have a chance to bounce back. The pessimistic scenario however; It will be void if BTC regains the 50-day moving average at $ 57k support. Bitcoin Is Entering a Downward Trend!  

Source: investing.com

 

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