Bitcoin (BTC), the preeminent cryptocurrency, has been gripped by bearish sentiments lately, standing at $25,142 at the time of writing. Over the last week, BTC slid almost 2.40%, and within the last 24 hours alone, the coin plummeted by 2.80%, according to CoinMarketCap data. Significantly, the downward slide has not been deterred by a high transaction rate on the network.
Interestingly, despite the discouraging market indicators, BTC transaction numbers have actually increased. Data from IntoTheBlock shows that the current rate of Bitcoin transactions has surpassed the averages seen in July 2023, a period when BTC was priced at around $30,000. However, this positive news hasn’t translated into a bullish trend for the cryptocurrency.
Moreover, key metrics signal more troubling times ahead for Bitcoin. At press time, the Relative Strength Index (RSI) for BTC stood at a lowly 32.59, pointing to an impending move further down. Additionally, although the Moving Average Convergence Divergence (MACD) line was above the signal line, the closeness of the two lines failed to indicate a bullish outcome. Consequently, the Money Flow Index (MFI) also confirmed Bitcoin’s bearish outlook.
Furthermore, data from Santiment, the on-chain intelligence platform, highlighted that the total number of BTC holders has decreased, standing at 49.6 million currently. Adding fuel to the bearish fire, BTC’s weighted sentiment has taken a nosedive. An interesting yet concerning trend has emerged in BTC’s volume: despite the price drop, volume is up, signaling increased selling pressure.
Whales, or holders of large amounts of BTC, are contributing to this pressure. Whales holding between 100-1000 BTC, and even those in the 10,000-100,000 BTC bracket, were seen trimming their balances, confirming increased selling activity in the market.
Besides, a recent tweet from Glassnodealerts stated that the number of BTC addresses in a loss has reached an eight-month high, exacerbating the bearish atmosphere.
Hence, while BTC currently seems to be completely under the influence of bears, there’s a glimmer of hope. A market bottom could potentially lead to a trend reversal, and given BTC’s current trajectory, it might move into the oversold region in the coming days, opening the door for a potential bounce back.