- BTC’s weighted sentiment has been negative for the past three weeks.
- Other on-chain indicators point to the possibility of further price decline below $66,000.
as bitcoin [BTC] The weekly decline widened by another 4%, but its weighted sentiment remains bearish, according to Santiment data.
In a post on X (formerly Twitter), Santiment pointed out that BTC’s weighted sentiment has been negative for the past three weeks.
The beginning of this bearish trend occurred on March 14th, coinciding with the coin’s price falling from its all-time high of $73,750. Trading at $66,572 at the time of writing, BTC price has fallen 10% since then.
Crowd sentiment towards 😱 #bitcoin and #cipher Markets have generally been volatile since the big correction three weeks ago.parable $BTC Just 2 weeks until halving, reflecting trader sentiment #FUD and #bearish Expectations.
Price goes back to $69,000… pic.twitter.com/DYs5RYNR95
— Santiment (@santimentfeed) April 5, 2024
Santiment added that using historical precedent, the price of BTC often “moves in the opposite direction to what the crowd expects.”
The price of BTC reverses during periods when the market reaches euphoric highs and is expected to continue rising. Conversely, when sentiment deteriorates and the market expects further decline, BTC price is known to start an uptrend.
This pattern continues even recently.
Further decline in the short term?
On April 4th, BTC price briefly rebounded above the $69,000 price level and then returned to the $66,500 area. A new resistance level has formed at $69,000, and on-chain data suggests that the value of the major cryptocurrency could fall further in the short term.
First, the coin’s taker/buy ratio, measured by the 30-day simple moving average (SMA), fell below the zero line on March 8th, foreshadowing the price decline that started on March 14th.
The taker-buy ratio is an indicator that measures the ratio of the buying and selling volumes of an asset in the futures market. Values greater than 1 indicate more buys than sells, and values less than 1 indicate more sells than buys.
Since March 8th, the value of BTC’s taker-buy ratio has been less than 1. A steady decline in this indicator means that there are more sellers than buyers executing instant trades on the BTC market.
This situation is expected to continue as long as the market remains bearish, putting downward pressure on the coin price.
Source: CryptoQuant
Furthermore, recently reportpseudonymous CryptoQuant analyst Tugbachain, discovered that BTC’s NVT golden cross issued a sell signal and closed in March.
This indicator compares the 30-day moving average of a coin’s network value-to-transactions (NVT) ratio to the 10-day moving average.
read bitcoin [BTC] Price prediction for 2024-2025
Returning a value less than 1.6 will generate a long signal. Conversely, a value above 2.2 is considered a signal to enter a short position.
According to Tagba Chain,
“At the end of March, the Bitcoin price was around $71,000, and the NVT value reaching the 3.17 level served as an indicator that a local peak had been reached. ”
