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Posted:
- BTC was surrounded by the bears as its RSI plummeted further at the time of writing.
- Some whales were seen contributing to selling pressure as of 11 September.
Bitcoin [BTC], for the better part of the last seven days, managed to stick to the $25k price level. With the absence of significant buying pressure and the presence of elevated selling pressure, BTC stood at $25,142 at the time of writing. As per data from CoinMarketCap, the king of cryptocurrency slipped by almost 2.40% in the last seven days and by 2.80% in the last 24 hours.
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Despite the disheartening performance, BTC holders did have something to rejoice about. As per data shared by IntoTheBlock, the price plummet didn’t have an impact on the number of Bitcoin transactions.
Bitcoin transactions aren’t slowing down. Despite a significant decrease in price over the past few months, Bitcoin is processing more transactions on average than when price was at $30k in July
🔗https://t.co/n7lvDvAgct pic.twitter.com/b0ctlNqrdV— IntoTheBlock (@intotheblock) September 11, 2023
As per the update posted on X (formerly known as Twitter), Bitcoin was processing more transactions on average than in July 2023. Recall that this was the time when the price of BTC touched the $30k mark.
Is there really cause for celebration?
While the Bitcoin network processing higher transactions was surely news to celebrate, the impact of the news wasn’t seen on BTC. This was because, at the time of writing, BTC wasn’t in a pleasant state. The Relative Strength Index (RSI), at press time, stood at 32.59. However, its position clearly indicated a further move south.
A move like this indicated the grave selling pressure that surrounded BTC. Furthermore, the Moving Average Convergence Divergence (MACD), although showed the MACD line above the signal line, didn’t indicate a bullish outcome. This was because of the proximity between the signal line and the MACD line.
A rise in bearish momentum would lead to a bearish crossover albeit above the zero line.
Source: TradingView
A drooping Money Flow Index (MFI) strengthened the notion of BTC’s bearish stance.
The trouble continues…
Accompanying the trouble on the price front were BTC’s metrics that didn’t show any signs of a possible recovery in the situation. Data from the on-chain intelligence platform Santiment indicated that the total amount of BTC holders witnessed a drop. This number stood at 49.6 million at the time of writing.
Read Bitcoin’s [BTC] Price Prediction 2023-2024
Furthermore, BTC’s weighted sentiment witnessed a significant drop as is evident from the chart placed below. An interesting development was seen in BTC’s volume. A drop in BTC’s price with a rise in volume could be considered a bearish signal as it indicated selling pressure around the king coin.
Source: Santiment
The selling pressure around BTC was confirmed as certain whales were seen trimming their balances. Whales holding 100-1000 BTC were seen selling their holdings as can be seen from the chart given below. Furthermore, whales with 10,000-100,000 BTC also decided to cut some losses.
Source: Santiment
Adding to the ongoing bearish sentiment, a tweet posted by glassnodealerts stated that the number of BTC addresses in loss reached an eight-month high.
📈 #Bitcoin $BTC Number of Addresses in Loss (7d MA) just reached a 8-month high of 19,505,397.244
Previous 8-month high of 19,502,221.804 was observed on 07 September 2023
View metric:https://t.co/s2ciFMlDcX pic.twitter.com/SBUTHBmBnM
— glassnode alerts (@glassnodealerts) September 11, 2023
While BTC seemed completely under the influence of the bears at the time of publication, the good news was that BTC would see a trend reversal after hitting a market bottom. And given BTC’s ongoing trajectory, it could move toward the oversold region over the next few days.