Bitcoin [BTC]: Investors should consider these factors before making a decision

by James · September 25, 2022

Bitcoin‘s (BTC) performance over the past month has left no one happy, with BTC not registering many gains on the charts. Nevertheless, opinions differ. While some believe a price increase may be coming, others believe the cryptocurrency may fall further down the charts.

Interestingly, a look at a few analyzes and market indicators can give us a better picture of the whole situation. At press time, BTC was trading at $19,078 on the back of a 5% decline on the weekly charts.

Darker days ahead?

Amid all the various speculations on social media, several analysts have predicted that BTC’s price may plunge further in the coming days. For example, MAC_D, an analyst and writer at CryptoQuant, recently published a evaluation regarding BTC. In his analysis, he pointed out that on September 13, 11,900 Bitcoins entered Coinbase. Later, 31,200 Bitcoins were transferred from Coinbase to derivatives exchanges just before the price of Bitcoin fell drastically on September 13.

Source: CryptoQuant

He stated,

“BTC holdings on the derivatives exchange increased just before dumping BTC, and whales appear to have intentionally opened short positions on the derivatives exchange, driving down BTC prices.”

The increasing number of BTC short positions on derivatives exchanges suggests a further drop in BTC’s price in the coming days.

Mac, a popular crypto influencer, also offered his opinion on what to expect from BTC. According to the analyst, the cryptocurrency could touch the $20,000 mark next week and then fall sharply and perhaps go as low as $17,000 on the charts.

I can see a bounce to $20,000-$20,500 too $BTC and $1500 ish for $ETH early next week before a dump into the $17,000s

A lot of blood will be spilled on both sides, if you don’t feel like you have a head start on this stay on the sidelines.

Let’s see how it turns out

— Mac 🐺 (@MacnBTC) 24 September 2022

Metrics at stake

While the aforementioned analysis and prediction indicated darker days ahead for the king of all cryptos, a few calculations suggested otherwise.

For example, BTC’s exchange supply has decreased significantly in the past week, which is a bullish signal. Similarly, BTC’s MVRV Ratio also recorded an increase, indicating a possible price increase in the coming days.

Source: Sentiment

Interestingly enough the number of active Bitcoin addresses with non-zero balances rose over the past seven days. This indicates investors’ confidence in the coin. But at the time of writing, it appeared that the number was trending towards a decline.