The Bitcoin [ BTC ] saga seems ceaseless as the flagship cryptocurrency fell below the $ 30k mark so far again. The king mint did witness signs of convalescence after the Terra collapse but looks like the crypto gods aren ’ thyroxine as pleased with the coin. now the question is- Why BTC is toss off again and is there any near-term convalescence in view for investors ?
Let ’ s find out.
The on and offs of the king coin
Bitcoin prices are below $ 29k again after the Terra doss. There are suggestions calling out macro headwinds that are responsible for pulling down BTC prices to support levels .
notably, the S & P 500 and NASDAQ finished their one-seventh consecutive week in losses. This is the longest miss stripe since the end of the dotcom bubble in 2001. additionally, the Dow is besides in its eight consecutive weekly loss, the longest mottle since the 1932 Great Depression .
A Santiment tweet besides indicated a correlation between BTC and the S & P 500 index, and how BTC ’ s top drift was ‘ halted ’ by ‘ equities. ’ The major indices have been witnessing a free fall with the warn signs of recession and looming inflation at bombastic .
even so, the king coin saw bulls stepping in at the $ 30k mark only to lose the competitiveness to the bears. At imperativeness meter, the Fear and Greed Index stood at 13 indicating ‘ extreme Fear. ’
What do the charts say?
The metrics are besides aligned with the aforesaid information, sending out worrying signals across the Bitcoin network. Investors ’ fear can besides be perceived through the low transaction volumes .
As per Glassnode reports, the transaction book dipped to a four-month low on 21 May. This tied of an extreme low was besides witnessed back in March 2022 when the transaction volume stood at 145,015.1 BTC.
Another metric highlighting a bearish stance on the bitter state of Bitcoin is the NVT signal. The NVT signal on 21 May for Bitcoin stood at a staggering four-year abject of 235.2, as per Glassnode .
This suggested that Bitcoin was approaching a local market bottom which historically presents a period of accumulation. however, presently, there is an underlie FUD opinion in the market because of the discount prices of assets .
Hang on….. There’s more
interestingly, renowned crypto analyst plan B recently tweeted suggesting a swerve reversal in the BTC prices. plan B ’ s price predictions are widely used for analysis in the crypto community given his 1.8 million chitter following .
Realized Price / Moving Average ( RPMA, imperial ) shows the # bitcoin bicycle best. relative Strength Index ( RSI, scandalmongering ) is similar, but can be misleading at critical times ( e.g. 2nd one-half 2021 ). The good newsworthiness : bear market is about over. Waiting for RPMA and RSI to start rising again. pic.twitter.com/Naz2zPV071
— PlanB ( @ 100trillionUSD ) May 20, 2022
design B used the “ Realised Price/ Moving Average ( RPMA ) ” and RSI metrics to conclude a approach end for the give birth market. There is growing confidence about BTC recovery with Plan B suggesting RPMA as being the “ best ” index for Bitcoin. Despite all the bearish signals, Plan B looked bright for a quick revival.
well, no matter what the indicators or analysts say, lone time can reveal Bitcoin ’ s future price trajectory .