Bitcoin Might Face Downside Action in the Short Term: Analyst
Crypto Guide
Live News

Keeping up with all the cryptocurrency news and updates is not an easy task, but we are up to the challenge! This way we can help our readers to keep track of changes in these fast growing currencies. Just like our site, is willing to face this challenge and on their site, they compile the features, key elements, and recent news involving bitcoin casino sites and which are the best to try!

Bitcoin Might Face Downside Action in the Short Term: Analyst

May 15, 2021      Jafrin Ahmed

Bitcoin market has been facing downwards price action over the past couple of days. Even though data from on-chain metrics suggests that BTC over the long term looks positive, it also indicates that its short-term downside has just started. Bitcoin whales are moving their BTC to exchanges, suggesting that there might be further downside action in the near term.

Bitcoin Downside Action Could Spell Losses In the Short-Term

The past two days had been quite challenging on the price of the world’s leading cryptocurrency, Bitcoin.

From a high of around $58,000 on May 12th, BTC started to drop rapidly from the $54,000-55,000 region following news that Tesla had stopped accepting the flagship cryptocurrency as payments for their electric vehicles.

READ  Coinbase Is The Real Deal, But Brace Yourself For A Bumpy Ride: Jim Cramer

The digital asset’s long-term momentum continues to weaken, which could further limit its price recoveries this weekend and into next week.

Commenting on this, the CEO of crypto data analytics firm, CryptoQuant, Ki Young Ju said that there might be further downside action in the short-term:

“If you’re a long-term BTC investor, don’t worry. Your portfolio is the same as institutional investors in the States. If you’re a derivative trader, be careful in the short-term. (Relatively speaking) whales are depositing BTC to exchanges.”

Another metric that indicates a bearish signal shows that whales and sellers have continued to offload BTC, despite failing to make a profit on their trades, indicating that sell-side pressure may lead to a breakdown in the price for BTC.

Despite the short-term losses, the on-chain metric signals a bullish pattern for the long term.

READ  Staking Allowed in STC Token to Power the Student Coin Ecosystem

Bitcoin Could Rebound from Its Price Dips

Data from CryptoQuant further suggests that stablecoin reserves on exchanges have continued to grow during Bitcoin’s recent price dip over the past couple of days. The larger these stablecoin reserves are on exchanges, the easier it will be for the cryptocurrency to climb out of the dip when upwards momentum returns, according to the data analysis firm.

Meanwhile, Bitcoin’s Fear & Greed Index suggests that that the Bitcoin market is currently is in a state of fear, with the index at 26 basis points. Historically, this has been a good opportunity for a rebound.

#Bitcoin #BTC Price #CryptoQuant #Ki Young Ju
Jafrin Ahmed
Jafrin Ahmed

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.