BTC’s price drop had minimal impact, but investors continue to suffer…
- Bitcoin’s price declined by more than 3% in the last 24 hours, along with an increase in volume.
- BTC witnessed an increase in selling pressure, as evidenced by its exchange netflow.
The crypto market witnessed another price correction on 14 June, which led to most cryptocurrencies shedding their value. Bitcoin [BTC] was also affected, as its 24-hour price chart was painted red.
After the episode, several investors were in a dilemma about whether the market would rebound or whether the declining trend would continue longer. According to CoinMarketCap, BTC was down by over 3% in the last 24 hours. At the time of writing, it was trading at $24,887.75 with a market capitalization of over $483 billion.
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Bitcoin’s downtrend has a silver lining
As per the latest analysis from CryptoQuant, it seemed likely that the downtrend of 14 June might not be a major one. IT Tech, an analyst and author at CryptoQuant, mentioned in an analysis that if the aSORP was to be considered, the last price correction had the metric stand at 0.99, which was quite neutral.
In the current ‘bull’ market phase, the aSOPR has been acting as significant support. For starters, aSORP is a ratio that calculates the proportion of spent outputs that are currently in profit. This ratio is determined during a specific time window.
But what about BTC’s next bull rally?
Though aSOPR suggested that the latest price correction was a minor one, investors might have to wait longer to see BTC enter its next bull rally. MAC_D, an author and analyst at CryptoQuant, pointed out in his analysis that although multiple indicators showed that BTC had already exited the oversold phase and was in the recovery phase, it seemed that it will take some time for BTC to reach the bull market phase.
As per the analysis, the biggest factor affecting the change in BTC prices was the change in the value of the dollar. However, the SEC’s regulations were making US institutional investors feel burdened to invest in crypto. Therefore, it might take longer for BTC to actually kickstart its next bull rally.
Read Bitcoin’s [BTC] Price Prediction 2023-24
…BTC’s net deposit on exchanges was high compared to the last seven days. This suggested that the coin was under selling pressure. Additionally, BTC’s price decline was accompanied by a 61% increase in trading volume, which was typically bearish.
Surprisingly, during the price correction, BTC’s supply on exchanges went down, while its supply outside of exchanges increased.