Bitcoin’s price action hasn’t fascinated investors recently. The world’s leading crypto has formed reds since the celebrated surge of August 15, which had BTC hitting the $25K region.
While the asset consolidated near $24K until August 17, the previous two days were worse as Bitcoin hovered at $21,290 during this publication.
Coinmarketcap data shows Bitcoin lost more than 13% within the past seven days. Nevertheless, the data showed that more than 60% of the drop emerged between August 18 and this publication.
Prepare for Distress
While market players might think the bottom is around the corner, BTC’s current momentum could go otherwise. That’s according to a CryptoQuant analyst, Ghoddusifar. The analysis shows Bitcoin might witness another 30% decline from its present level.
Why does that occur, though? Ghoddusifar stated that BTC’s RSI (Relative Strength Index) had broken. He said the token had witnessed four bearish flag setups since the decline started, and another one would trigger a 30% price drop.
Assessing the 4hr chart shows analyst’s prediction might be valid. The recent momentum showed that Bitcoin was encountering massive volatility as the BB (Bollinger Bands) expanded more amidst continued price decline.
Furthermore, the Relative Strength Index was highly oversold, reading 25.62 during this publication. Though the drawdown, the Relative Strength Index was yet to show recovery signals to accommodate buyers.
Also, the DMI (Directional Movement Index) revealed similar sentiments. BTC/USDT’s chart showed the DMI preferred selling activities as the 33.83 –DMI stays largely beyond the 9.19 +DMI.
Though investors could have expected a weak direction action, the ADX (Average Divergence Index) displayed a massive movement in the downside favor.
On-Chain Metrics
Santiment’s data showed the MVRV (Market Value to Realized Value) ratio wasn’t supporting profit-taking by investors. Investors who sell at the prevailing price might risk selling at colossal losses as the 30-day MVRV hovered at -7.1%.
Bitcoin saw its volume increasing despite glaring bearish signals. The index saw a 14.27% upsurge within the previous 24 hours to $38.37 billion.
Considering Ghodduisfar’s forecast and on-chain indexes, it might be logical for Bitcoin investors to alleviate near-term profit anticipation as the crypto might lose 30%.
