- BTC NVT’s gold cross stood above 2.2, which was not a good sign for the king of cryptocurrencies.
- BTC’s fear and greed index was also in a neutral position at the time of writing.
The past 20 days have been nothing short of a roller coaster ride, not just for Bitcoin [BTC] but also holders and investors. As exciting as the price of BTC above USD 30,000 has been, the movement of the past few days can be considered the opposite.
How much are 1,10,100 BTC worth today?
Traders and investors should also brace themselves for some more impact. According to a CryptoQuant analysis by gigisulivan, the price of BTC could fall further in the coming days. According to the analysis, BTC’s NVT golden cross ratio reached 2,235 on April 25.
Note that any time the NVT cross ratio goes above 2.2, the cryptocurrency is overbought. The NVT ratio crossing the 2.2 mark meant that BTC was overbought and a price correction was imminent.
Source: CryptoQuant
It’s all about the mixed tape
At the time of writing, data from CoinMarketCap indicated that BTC traded hands at USD 28,224 and witnessed a 2.85% increase in the past 24 hours. However, seven-day performance was down ∼7%.
When considering the exchange net flow of BTC, it could be seen that at the time of writing, the outflow of the king coin dominated the inflow. The net flow on the exchange was -1,110 at the time of writing.
This meant that more traders moved their BTC off the exchanges instead of into the exchanges. Definitely a favorable factor for BTC.
Source: Glassnode
In addition, BTC’s Relative Strength Index (RSI) was at the neutral reading of 35, indicating overlooked bearish rather than bullish sentiment. However, the stochastic RSI was at 17 in an oversold position. This could be an indication that a trend reversal could soon follow.
Source: CryptoQuant
However, data from intelligence platform Santiment did not paint a very convincing picture of the king coin. According to the chart below, BTC’s weighted sentiment was not at its best at the time of writing and stood at -0.223. In addition, BTC’s social dominance, while witnessing ups and downs, witnessed a decline during the press.
Source: Sentiment
Is patience the ‘key’ of BTC?
According to an analysis of CryptoQuant Analyst, CrazyBlockk, investors who patiently held onto their BTC made profits. According to the findings, the number of coins moved by long-term investors generated a significant profit than the number of coins moved by short-term traders.
Is your wallet green? Check out the Bitcoin Profit Calculator
In addition, looking at the long/short ratio still did not seem to favor short-term holders. As of April 25, according to data from CoinGlass, BTC’s long/short ratio favored long-term holders over short-term holders, but only by a small margin.
At the time of writing, the dominance of long-term holders stood at 50.83%, while short-term holders stood at 49.13%.
Source: mint glass
Whether one decides to hold BTC for the long or short term, at the time of writing, BTC’s fear and greed index painted a very neutral picture. This indicated that there was no clear bullish or bearish indication in the market.
However, this was also a very strong indication that BTC could tip its scales in favor of either one in the coming days. Investors must therefore be alert to any drastic market movements.
Bitcoin Fear and Greed Index is 53 – Neutral
Current price: $28,240 pic.twitter.com/6vJAjPmn28— Bitcoin Fear and Greed Index (@BitcoinFear) April 25, 2023
