price movement of Bitcoin [BTC] It hasn’t pleased investors lately. Since hitting $25,000 on August 15th, which delighted investors, BTC has now only succumbed to losses.
It held around $24,000 until August 17, but has deteriorated over the past two days as BTC’s price remained at $21,290 at the time of writing.Around coin market capitalizationBTC has lost more than 13% of its value in the last seven days. However, according to records, more than 60% of this loss occurred between August 18th and the time of this writing.
prepare for hardship
Investors may hope a bottom is near, but BTC’s current momentum may make them think otherwise.this evaluation According to Ghoddusifar, CryptoQuant Analyst. Analysis shows BTC could fall another 30% from its current state.
why did this happen? Ghoddusifar said the BTC Relative Strength Index (RSI) has already broken. He added that there have been four bearish flag patterns since the recession began, and if another pattern emerges, he could lead to a further 30% price plunge.
A look at the 4-hour chart may have confirmed that the analyst’s forecast was valid. The recent momentum showed that BTC faced extreme volatility as the Bollinger Bands (BB) widened further as the price continued to plummet. Additionally, the RSI is at an incredibly oversold level, at 25.62 at the time of writing. Despite the drawdown, the RSI showed no signs of recovery to accommodate the buyers.
The directional index (DMI) also shared the same sentiment. The BTC/USDT chart reveals that the DMI is in favor of sellers as -DMI (red) at 33.83 significantly outperformed +DMI (green) at 9.19. BTC investors may have been hoping for a weaker direction, but the Average Directional Index (ADX) showed a strong move in favor of red.
On-chain data platform Santiment Indicated The market value to realized value (MVRV) ratio was not well positioned for investors to make a profit. With his 30-day MVRV ratio of -7.1%, most of his BTC investors selling at current prices could risk selling at a huge loss.
Despite the obvious bearish signs, BTC volume increased. It rose 14.27% to $38.37 billion in the last 24 hours.
Comparing the state of on-chain indicators to Ghodduisfar’s predictions, a 30% drop doesn’t seem impossible, so it might be a smart move for BTC investors to take a breather on short-term profit expectations.