Key Points
- Bitcoin (BTC) has experienced a 6.31% decline over the past week, trading at $61,436.
- Analysts suggest further downtrend due to bearish market sentiment and weaker confidence among long-term holders.
Bitcoin’s [BTC] price has recently been in a downturn, despite October typically being a month of positive price action. Over the past week, Bitcoin has seen a 6.31% decline, with the cryptocurrency trading at $61,436 at press time.
The past 24 hours have brought a minor recovery, with Bitcoin’s price increasing by 0.92%. Despite the recent downtrend, Bitcoin has seen an 8.18% increase on its monthly charts. The inconsistent price movement has sparked discussion within the crypto community.
Analyst Predicts Further Downtrend
Crypto analyst Rekt Capital suggests that Bitcoin could be set for further decline. According to his analysis, Bitcoin is continually facing resistance from the PI Cycle MA. As long as this remains the case, Bitcoin is likely to continue its downtrend.
However, it’s also been noted that despite the declining prices, buyers are beginning to accumulate. This is demonstrated by the formation of a 4-hour bullish divergence. Despite this, the repeated rejections at the resistance level indicate that buyers are struggling to push prices higher.
What Do Market Indicators Say?
In addition to Rekt Capital’s analysis, other market indicators suggest a bearish outlook for Bitcoin. Bitcoin’s exchange supply ratio has risen from 0.1304 to 0.131 in the past few days. This indicates that investors are depositing assets into exchanges to sell, which could cause downward price pressure.
Bitcoin’s MVRV Long/Short difference has also been declining, dropping from 4.3% to 3.2% over the past week. This suggests that long-term holders are losing confidence as their profitability margins decrease.
Furthermore, a declining Open Interest (OI) per exchange, from $6.1 billion to $5.2 billion, suggests that investors are closing positions without opening new ones. These indicators suggest that the current market sentiment for Bitcoin is bearish.
If these conditions persist, Bitcoin could find its next support around the $58272 resistance level. A trend reversal could see Bitcoin reclaim $62700.
