Bitcoin saw massive bullish surges last week. It saw significant increases, resulting in a peak above $69k. Although clamors for a retest if the $70k resistance grew, the attempt never happened.
Sunday was the height of the uptrend as the apex coin attained its highest valuation in over three months. It hit a high of $69,400. Although the bulls attempted to continue the trend they on Monday as they appeared exhausted from the previous upticks.
However, since the failed surge on the first days of the week, the coin has failed to register any notable price increases. For example, it lost the $67k support and dipped to $66,700. It closed with losses of almost 3%.
Price actions during the previous intraday session sparked hopes of resuming the uptrend as it ended with a doji. However, current trading actions points to continuation of the downtrend . It dropped to a low of $66,380 and has lost almost 3%.
Onchain Data Points to More Declines
Exchanges are seeing very small Bitcoin inflow over the last 24 hours. The same sentiment is also present on the seven-day timeframe. The netflow total is also negative due to this actions.
While these may show notable bullish actions, other metrics show signs of further declines. One such is the unrealized profit margin. Most wallet have recorded notable gains since the uptrends started. This indicates that some holders may start a selloff, resulting in the further declines.
Large bag holders are currently moving their assets. Such actions may cause panic among retailers as they may perceive the move as preparation to liquidate their holdings. The aSOPR show that both large and small bag holders are dumping.
Miners stopped selling for some time last week, contributing to the uptrends. However, the producers have resumed bearish actions, which may result in excess supply in the coming days of the buyers fail to soak it up.
Recent data shows that several key sectors of the market is seeing less funding. For example, BTC ETFs and other products are seeing little inflow, resulting in a negative Funds Premium. This is also the same sentiment in the Asian market as Korea Premium is negative.
Nonetheless, US traders are devoting more capital to Bitcoin. Derivatives market is also buzzing with bullish sentiment as funding rates increases. Long position holders adding more avoid liquidations. Both the bulls and bears and getting REKT due to the latest decline and uptrend.
However, onchain metrics like the relative strength index and stochastic hints at further declines. RSI shows that the asset is overbought and will decline.
How Low Will Bitcoin Go?
The one-day chart shows why BTC may register more declines. For example, the relative strength index is declining as selling pressure rises.
The moving average convergence is printing sell signals at the time of writing. The 12-day EMA halted its uptrend and is currently declining, hinting at the start of bearish convergence. The metric will intercept the 26-day EMA in the coming days if trading conditions worsens.
Bitcoin recently broke out of the Bollinger bands. Such breakout signifies the end of the uptrend as the bulls are getting exhausted. The latest decline is an indication of such exhaustion. The average direction index halted it rise and is trending parallel due to a lack on momentum.
The Fibonacci retracement level highlight key levels to watch. One such is the 50% level at $66k. The apex coin may break this critical mark following consistent retests.
Bitcoin also risks a drop to the 78% fib level at $64k. If the bulls fail to defend this mark, previous price movement suggests a possible drop to $62k.
