Posted:
- BTC was surrounded by the bears as the RSI continued to plummet at the time of writing.
- Beginning on September 11, some whales were seen contributing to the selling pressure.
Bitcoin [BTC]managed to hold on to the $25,000 price level for most of the past seven days. The lack of significant buying pressure and the presence of increased selling pressure left BTC at $25,142 at the time of writing. According to data from CoinMarketCapthe cryptocurrency king is down almost 2.40% in the past seven days and 2.80% in the past 24 hours.
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Despite the discouraging performance, BTC holders had something to look forward to. According to data shared by IntoTheBlock, the price drop did not affect the number of Bitcoin transactions.
Bitcoin transactions do not slow down. Despite a significant price drop in recent months, Bitcoin is processing more transactions on average than when its price was $30,000 in July.
????https://t.co/n7lvDvAgct pic.twitter.com/b0ctlNqrdV— IntoTheBlock (@intotheblock) September 11, 2023
According to the update on
Is there really reason to celebrate?
While the Bitcoin network processing higher transactions was certainly news to celebrate, the impact of the news was not seen on BTC. This was because BTC was not in a pleasant state at the time of writing. The Relative Strength Index (RSI) stood at 32.59 at the time of writing. However, his position clearly indicated a further move south.
Such a move indicated the severe selling pressure surrounding BTC. Furthermore, even though the MACD line was above the signal line, the Moving Average Convergence Divergence (MACD) did not indicate a bullish outcome. This was due to 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 declining Money Flow Index (MFI) reinforced the idea of BTC’s bearish stance.
The problems persist…
The problems on the price front were accompanied by BTC’s figures, which did not show any sign of a possible recovery of the situation. Data from on-chain intelligence platform Santiment indicated that the total number of BTC holders witnessed a decline. At the time of writing, this number was 49.6 million.
Read Bitcoin’s [BTC] Price forecast 2023-2024
Furthermore, BTC’s weighted sentiment saw a significant decline, as shown in the chart below. An interesting development was observed in the volume of BTC. A decline in the price of BTC with an increase in volume can be considered a bearish signal as it indicates selling pressure around the king coin.
Source: Santiment
The selling pressure around BTC was confirmed when certain whales were seen trimming their balances. Whales were seen holding 100-1000 BTC as shown in the chart below. Moreover, with 10,000-100,000 BTC, whales also decided to cut some losses.
Source: Santiment
Adding to the ongoing bearish sentiment, a tweet from glassnodealerts stated that the number of lost BTC addresses hit an eight-month high.
???? #Bitcoin $BTC Number of addresses at a loss (7d MA) just hit an eight-month high of 19,505,397,244
The previous eight-month high of 19,502,221.804 was observed on September 7, 2023
View statistics:https://t.co/s2ciFMlDcX pic.twitter.com/SBUTHBmBnM
— Glassnode Alerts (@glassnodealerts) September 11, 2023
Although 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 continued trajectory, it could move towards oversold territory in the coming days.