- Bitcoin’s social metrics dropped in the last week.
- Derivatives metrics and market indicators looked bearish on the king coin.
After successfully crossing the $44,000 mark, Bitcoin’s [BTC] growth momentum declined. However, it fell prey to a price correction, as both its daily and weekly charts turned red.
AMBCrypto had earlier reported that BTC’s price could plummet to $38,000 in the coming days.
At press time, CoinMarketCap showed that the king coin was down by more than 6% in the last seven days, trading at $40,918.60 with a market cap of over $800 billion.
Bitcoin is slowing down
If the latest data is to be considered, investors should expect the king of cryptos’ price action to remain slow.
Notably, X (formerly Twitter) analyst CryptoCon recently revealed that Bitcoin has reached its final, light resistance point on MVRV before reaching the red zone.
Therefore, investors must remain patient until BTC’s MVRV Ratio crosses the red line before the coin starts to register price hikes.
Almost there… but not quite.#Bitcoin has reached the final, light resistance point on MVRV before reaching the red zone.
So light in fact, it's barely detectable!
Nothing has changed here.
Break out of green, go to red.
Awaiting patiently for its arrival!
47 – 49k. pic.twitter.com/qiqALmnV2C
— CryptoCon (@CryptoCon_) December 12, 2023
AMBCrypto then took a look at social metrics to better understand what the market was expecting. It appeared that its Social Volume fell, suggesting a decline in its popularity.
Negative sentiment around the coin also remained high, as evident from the dip in its Weighted Sentiment.
Source: Santiment
The derivatives market looks bearish
AMBCrypto took a look at Bitcoin’s derivatives market, which showed another bearish signal. According to Coinglass, both BTC’s Funding Rate and Open Interest increased in the recent past.
This meant that futures investors were actively buying BTC while its price remained low, increasing the chances of a trend continuation over the coming days.
Source: Coinglass
Read Bitcoin’s [BTC] Price Prediction 2023-24
Upon a look at BTC’s daily chart, AMBCrypto found even more bearish indicators. Notably, its MACD displayed a clear bearish crossover. Moreover, both the Relative Strength Index (RSI) and the Money Flow Index (MFI) registered downticks.
As per the Bollinger Bands, BTC’s price was entering a less volatile zone. This further increased the chances of a few more slow-moving days before BTC kick-starts a fresh bull rally.
Source: TradingView
