Bitcoin had its price actions beneath the $20K level during this publication, following a double-digit drop over the past month (-14%). Coinmarketcap data shows the bellwether crypto changed hands near $19,789.55 during this writing.
Also, Bitcoin’s daily chart wasn’t glamorous. Crucial indicators for tracking Bitcoin trading volume and cash inflow maintained southbound tendencies. BTC’s RSI (Relative Strength Index) stood at 35, beneath the 50-neutral. Considering the plunging buying momentum, the CMF (Chaikin Money Flow) stood beneath the center line, reading -0.15.
Lastly, the MACD’s (moving average convergence divergence) didn’t present any relief, with the bear markets, which arrived on August 16, remaining massive. Are you planning to join the craze and buy at discounted prices hoping for bullish price action soon?
Bitcoin Paddling Through the Water
Assessing crucial on-chain metrics showed that the leading crypto will still struggle under the bearish influence for the foreseeable future. CryptoQuant analyst Minkyu Woo evaluated Bitcoin’s fund market premium & noted that an impending bullish run could be far.
The token’s fund market premium means the value obtained from dividing its NAV (Net Asset Value) from the result derived by subtracting the asset’s price from the NAV figure. Generally, a higher premium means higher buying momentum.
Woo revealed that Bitcoin’s fund market premium slumped steadily since the leading crypto touched the $65K ATHs in April last year. He added that the bull market could return when the fund market goes positive.
Grizzly, another analyst, stated that Bitcoin’s exchange reserve maintained upsides. Nevertheless, the rise reveals a cautionary sign. Such increments emerged in July and pushed BTC towards $25K (following the month’s bull run).
However, that came after a surge in Bitcoin’s exchange reserve triggered massive price drops. Grizzly trusts such narratives would see BTC on heightened volatility during the upcoming weeks.
The press time $19,736.69 BTC price reflected undervalued conditions. The analytic platform Glassnode revealed that Bitcoin’s stock-to-flow deflection hit an ATL (all-time low) of 0.188.
the stock-to-flow model suggests that a deflection of less than one means an undervalued asset. Meanwhile, Bitcoin trades beneath its ideal value area as it changes hands at the $19K shackles.
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