- Two Analysts at CryptoQuant believe that the price of BTC will fall below $25,000.
- BTC selling pressure has outweighed buying pressure in recent days.
Like that of Bitcoin [BTC] weighted sentiment lingers in the negative territory, CryptoQuant analyst Baro Virtual, in a new reportbelieved that the price of the king coin could fall below $25,000 as long as bearish sentiments remain in the market.
Baro’s conclusion was based on a rating of BTC’s Coin Days Destroyed (CDD) on a 21-day moving average. This metric tracks the number of cryptocurrency coins that have been inactive for a period of time and then suddenly moved.
According to Glassnode Academyit is calculated by multiplying the number of coins that have been inactive by the number of days they have been inactive.
According to Baro, BTC’s CDD metric revealed that the king coin experienced three periods of local accumulation on March 15, March 31, and April 12, respectively, after which a period of local distribution began on April 20.
Local distribution occurs when investors sell their holdings, causing the price of an asset to stagnate or fall slightly.
While BTC is lingering in this phase, Baro added, “Bitcoin is still moving within a local uptrend.” “However, the danger of a drop to $24,500-25,000 remains within the bearish H&S pattern.”
Source: CryptoQuant
Sharing the same opinion, another pseudonymous CryptoQuant analyst Abramchart noted that a new area of support had been identified following BTC’s fall from the $30,000 price point. According to Abramchart,
“Following Bitcoin’s recent decline, we can identify the following areas of support through the Realized Price – UTXO Age Bands indicator, which helps us understand each group’s holding behavior by comparing a range of different realized prices. The closest support area is 25619, which represents the average purchase price of wallets that have purchased Bitcoin in the past 3-6 months.
Source: CryptoQuant
The numbers on a daily chart
At the time of writing, BTC switched hands at $27,579.73. After the coin’s price peaked at $30,967 on April 14, it has since fallen by 11%.
On a daily chart, the relative strength index (RSI) of the coin rested at 42.44 below its 50 neutral spot. In a downward trend at the time of writing, selling pressure has outpaced accumulation.
Also, the coin’s Chaikin Money Flow (CMF) was seen below the centerline at -0.02. When an asset’s CMF returns a negative value, it means that the selling pressure is higher than the buying pressure.
It also suggests that the cash flow volume of the asset is declining and is often followed by a fall in price.
Source: BTC/USDT on TradingView