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Bitcoin’s (BTC) weekly chart showed a downward momentum, leading to a lackluster performance over the past week. According to the data obtained, BTC experienced a decline of about 4% in the last seven days.
Critical Metric in Bitcoin
Despite the downward price movement, investors show their trust in the cryptocurrency, as evidenced by their reluctance to sell. Similarly, a popular crypto analyst, Willy Woo, recently highlighted an important metric in a tweet. The analyst used the BTC SORP, which tracks the profit made when tokens are sold to new investors. According to his analysis, BTC investors appear to be expecting higher prices, as indicated by their reluctance to sell.
Furthermore, it is mentioned that the supply on exchanges and the supply outside of exchanges are tightly linked, which could mean that there is neither selling nor buying pressure at the time the report was written. A slowdown in Bitcoin’s velocity was also observed, which could mean fewer tokens are being transferred within a fixed time frame. Checks on CryptQuant’s data also indicate that Bitcoin’s binary CDD is on the rise, which could be interpreted as the recent activity of long-term holders. Additionally, the data was below the seven-day average, suggesting that they are willing to wait.
Bitcoin Liquidations
The daily transactions of BTC have also been low over the last 24 hours. A look at BTC’s liquidation levels reveals that the cryptocurrency has not witnessed substantial sales below its current value in the recent past. Therefore, the possibility of a trend reversal cannot be disregarded yet. If Bitcoin manages to gain upward momentum, it could face strong resistance near $43,600.
Another positive metric was Bitcoin’s fear and greed index. According to Glassnode’s chart, the fear and greed index for BTC was decreasing and was at a value of 67 at the time of writing. A declining metric typically indicates a “fear” phase, which often precedes a trend reversal. However, the MACD showed a clear downtrend on Bitcoin’s daily chart. The Money Flow Index (MFI) also registered a decline, which could lead to further drops in the price of the leading cryptocurrency.
