- The price of BTC hovered below $28,000, but that could change soon.
- Statistics were bullish on BTC, but market indicators supported the bears.
Bitcoins [BTC] price action lately has not favored investors as the chart has been largely red. The king of cryptos once again went below the $28,000 mark during press, causing a stir among investors.
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Is BTC setting up a trend reversal?
According to CoinMarketCap, the price of BTC registered a drop of more than 2% in the past seven days, along with a dip in trading volume. At the time of writing, BTC was trading at $27,706.83, with a market cap of over $536 billion.
😮 #Bitcoin‘s financing rate @BitMEX has the most negative ratio since the heavy bets against prices in mid-March, just before prices skyrocketed. In general, the chances of price increases increase when the masses massively assume that prices will fall. https://t.co/HbTcSouRsU pic.twitter.com/bu1dNDFTcU
— Santiment (@santimentfeed) May 10, 2023
According to Santiment’s aforementioned tweet, BTC’s BitMEX funding rate registered a massive drop since the heavy bets against prices in mid-March, just before prices went up. The likelihood of price increases generally increases when the consensus predicts that prices will fall.
So, as the funding rate was low, suggesting less demand in the futures market, the possibility of BTCThe price increase cannot be ruled out.
Bitcoin To Finally Profit From Ordinals?
Bitcoin ordinal numbers have been setting new records lately as BTC price action suffered. Recently, the number of daily Ordinals enrolled reached an all-time high, as did Ordinals fees paid. While BTC continued to rise during the period, Santiment’s data gives hope that the king of cryptos will benefit from Ordinals’ performance.
This is what the statistics say
BTC became popular again among the whales as Bitcoin addresses containing at least 1,000 BTC have accumulated over the past four days. This was good news, as it reflected the whales’ confidence in the currency. BTC’s foreign exchange reserve also decreased, indicating less selling pressure.
In addition, Bitcoin’s binary CDD was green. A green graph indicates that long-term shareholder movements over the past seven days have been below average and have a motive to hold their assets. From CryptoQuant dataBTC’s buy/sell ratio was also green, suggesting that buying sentiment was dominant in a derivatives market.
Source: CryptoQuant
Read From Bitcoin [BTC] Price prediction 2023-24
The ground reality may be different
While the stats were bullish, Bitcoin’s market indicators suggested otherwise. The Exponential Moving Average (EMA) ribbon revealed that bears led the market as the 20-day EMA was below the 55-day EMA.
BTCChaikin Money Flow (CMF) also registered a downtick, which was a development in the seller’s favor. However, the Money Flow Index (MFI) gave much needed hope as it registered an uptick.
Source: TradingView
