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Bitcoin short sellers are going to go gaga after reading this

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The king of cryptocurrency, Bitcoin [BTC], suffered a massive plunge in its price in June when the crypto market crashed, marking 2022 lowest of $18,154.

However, soon after, the coin gained a steady uptrend for the next two months. BTC also managed to cross the $24,000 mark, giving hope for a massive bull run soon.

But with recent developments, the situation may witness a change.

At the time of writing, BTC was trading below the $24,000 mark, at $23,491, with a market capitalization of $449,275,521,406.

Source: CoinMarketCap

What’s going on? 

A Chicago-based investor CryptoWhale with 533.8k followers on Twitter, recently tweeted that it expects a Bitcoin market crash.

According to the Twitter handle, a bearish divergence formed on BTC’s charts, indicating a plunge in its price was around the corner.

While many had different opinions, most Twitter users seemed to agree with CryptoWhale.

But, interestingly, a few metrics highlighted just the opposite of CryptoWhale’s prediction. 

Glassnode’s data showed that Bitcoin’s balance on exchanges reached a four-year low, indicating investors’ conviction to HODL. 

Source: Glassnode

However, Bitcoin’s number of addresses with a balance ≥ 0.01, which was on a constant uptrend, showed a decline lately.

Source: Glassnode

To add to the aforementioned data, last week, the percentage supply of Bitcoin profit also started to increase, giving hope to investors.

BTC’s percent supply in profit reached a three-month high of 62.03% on 12 August.

Source: Glassnode

Well, a look at BTC’s chart showed that after being on a gradual uptrend, the coin was following the sell-pressure post 15 August as it was unable to break its resistance at the $24,000 mark.

Multiple indicators, including the Relative Strength Index (RSI), Chaikin Money Flow (CMF), and Exponential Moving Average (EMA) ribbons, suggested bearish market conditions, further increasing the possibility of a downtrend in the coming week.

While Bitcoin’s price increased during the last week, a bearish divergence was seen on CMF (blue trend line).

Source: TradingView

Moreover, a bearish wedge pattern formed on BTC’s chart, indicating a downfall. Therefore, considering the chart and on-chain metrics traders need to be careful before making any moves. 

 

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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