Will Bitcoin’s price touch $25,000 in the short term? Analysts suggest….
- Two CryptoQuant analysts have believed that BTC’s price will fall below $25,000.
- BTC’s selling pressure has offset the buying pressure in recent days.
Like Bitcoins [BTC] weighted sentiment hangs in the negative territory, CryptoQuant analyst Baro Virtual, in a new reportbelieved that the price of the royal coin could fall below $25,000 as long as the bearish sentiments remain in the market.
Baro’s conclusion was based on an assessment 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 certain period of time and then suddenly moved.
In accordance 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 measurement revealed that the royal coin had 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 begin to sell their holdings, causing the price of an asset to either stagnate or decline slightly.
Although BTC is lingering in this phase, Baro added, “Bitcoin is still moving within a local uptrend.” However, “the danger of falling to $24,500-25,000 remains within the bearish H&S pattern.”
Source: CryptoQuant
With the same opinion, another pseudonymous CryptoQuant analyst Abramchart noted that a new support area had been identified after BTC’s fall from the $30,000 price mark. According to Abramchart,
“After the recent drop in Bitcoin, we can identify the next support areas through the Realized Price – UTXO Age Bands indicator, which helps us understand the holding behavior of each group by comparing a set of different realized prices. The closest support area is 25619, which represents the average purchase price of wallets that have purchased Bitcoin over the past 3-6 months.”
Source: CryptoQuant
The numbers on a daily chart
At press time, BTC changed 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 coin’s momentum indicator Relative Strength Index (RSI) rested below its 50-neutral spot at 42.44. In a downward trend at the time of writing, selling pressure exceeded accumulation.
Also, the coin’s Chaikin Money Flow (CMF) was spotted below the center line 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 asset’s cash flow volume is falling, and is often followed by a drop in price.
Source: BTC/USDT on TradingView
