BTC’s golden cross NVT stood above the 2.2 mark, which was not a good sign for the king of cryptocurrencies. Meanwhile, the BTC Fear and Greed Index also remained in a neutral position.
The last 20 days have been like a rollercoaster, not just for Bitcoin [BTC] but also holders and investors alike. As exciting as the BTC price above $30k was, its movement in the past few days could be considered the opposite.
Traders and investors may also have to brace for a bigger hit. According to an analysis by CryptoQuant, the BTC price could fall further in the coming days. Furthermore, the data indicate that BTC’s NVT golden cross ratio reached 2,235 on April 25.
It is worth keeping in mind that any time the NVT cross ratio rises above 2.2, the cryptocurrency is overbought. The NVT ratio breaking above the 2.2 mark meant that BTC was overbought, and a price correction could take place.
Mixed Tape
Right now, data from CoinMarketCap indicated that BTC was trading at $28,224, up 2.85% in the last 24 hours. However, its seven-day yield was down by 7%.
When considering the flow of the BTC exchange network, it could be seen that the outflow of the real coin dominated the inflow. The net exchange flow stood at -1,110 when the results of the analysis carried out by CoinMarketCap were disclosed. This meant that more traders were taking their BTC off exchanges instead of moving it onto exchanges. Definitely a favorable factor for BTC.
Furthermore, BTC’s RSI sat at the neutral value of 35, indicating a bearish sentiment that was overlooked rather than a bullish one. However, the Stochastic RSI was in an oversold position at 17. This could be an indication that a trend change could be in the offing soon.
However, the data from the Santiment intelligence platform painted a less-than-convincing picture of the actual currency. BTC sentiment weight was not at its best, sitting at -0.223. Furthermore, BTC’s social dominance, while witnessing ups and downs, saw a dip.
Is Patience the ‘Key’ to BTC?
According to a CryptoQuant analyst, CrazzyBlockk, investors who patiently held on to their BTC made a profit. These findings indicate that the number of coins moved by long-term investors made a considerable profit, compared to those made by short-term traders.
A look at the long/short ratio still did not seem to favor the position of short-term holders. According to CoinGlass data, BTC’s long/short ratio on April 25 favored long-term holders over short-term holders, but only by a small margin.
Currently, the dominance of long-term holders is 50.83%, while that of short-term holders is 49.13%. The BTC Fear and Greed Index painted a very neutral picture, showing no clear bullish or bearish indication in the market.
However, this was also a very strong indication that BTC could tip its balance in favor of either in the days to come. Therefore, investors should be on the lookout for any drastic movement in the market.
By Audy Castaneda
