Connect with us

Bitcoin

Another Bitcoin drop awaits? Here’s what analysts are saying

Published

on

Source: Unsplash

Bitcoin’s performance has been sluggish of late, thanks to the recent market decline. Last week’s performance of Bitcoin didn’t seem promising as the chart was mostly red.

At the time of writing, Bitcoin registered a negative 6.92% 7-day growth. And, it was trading below the $2,000 mark at $19,849.07.

The dark days for Bitcoin do not seem to end any time soon as certain reports and metrics indicate a further plunge. However, many believe there will be a trend reversal soon. 

Ambiguous market?

While the market declined, experts made several speculations about the future possibilities based on their assessments.

For instance, Maartunn, an analyst and writer at CryptoQuant, in his analysis, pointed out a recent large transaction that might have an impact on the market.

As suggested by previous episodes, such transactions are generally followed by a price decline.

Source: CryptoQuant

Maartunn mentioned, “From this point, it’s hard to say what impact it will have on the market. It is definitely not a bullish sign, but I’m not sure if we will see further downside or just consolidation similar to May.”

However, some Twitter users’ findings suggest otherwise. Technical analyst Gert van Lagen said a bullish head and shoulder pattern was formed on BTC’s chart, which indicates a price surge in the coming days. 

As usual, the crypto community’s reaction to this finding was also heterogeneous, as some users did not find it reasonable to accept. 

Nevertheless, certain on-chain metrics also support the findings of Lagen. BTC’s addresses with non-zero balances showed a steady increment over the past few months despite negative price actions. Thus, hinting at increased confidence and faith of investors in the king of cryptos. 

Source: Glassnode

Looking forward

Though a few metrics backed the possibility of an uptrend soon, others indicated darker days ahead for the world’s largest crypto. Bitcoin’s supply in the loss, at press time, was about to touch its 3-month high again after mid-June.

The figures dropped considerably during the beginning of this month, but things took a U-turn with the recent price plunge. 

Source: Glassnode

Moreover, Bitcoin’s MVRV ratio was well below the one mark, which generally suggests a market bottom.

But looking at the past figures, a further decline in price is possible as the MVRV ratio registered lower lows than the current position in the last few months.

Source: Glassnode

The diversity of opinions in the crypto community, mixed metrics reading, and the volatile nature of the crypto market make it difficult to accurately predict what the future holds for Bitcoin. 

Read the best crypto stories of the day in less than 5 minutes

Subscribe to get it daily in your inbox.


Please select your Email Preferences.

Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

Click to comment

Leave a Reply

Your email address will not be published.

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.