Key Points
- Bitcoin (BTC) experienced a 6.31% decline over the past week, with analysts predicting further downtrends.
- Despite the bearish market sentiment, BTC has shown slight recovery and accumulation by buyers.
Bitcoin’s (BTC) price has seen a significant drop of 6.31% over the past week, contradicting the usual October uptrend. The cryptocurrency was trading at $61,436 at the time of writing.
There has been a slight recovery in BTC’s price over the past 24 hours, with a rise of 0.92%. The monthly charts also show an uptrend, with an increase of 8.18%.
Market Sentiment and Analysis
Crypto analyst Rekt Capital suggests that BTC may face further decline. According to his analysis, BTC is continually being rejected by the PI Cycle MA, indicating a potential downtrend.
However, despite the declining price, buyers are beginning to accumulate BTC, as indicated by a 4-hour bullish divergence. This suggests that while buyers are struggling to push prices above the resistance, every rejection increases the bearish pressure.
Other Market Indicators
In addition to the analysis by Rekt Capital, other market indicators also provide insight into BTC’s current status. For instance, Bitcoin’s exchange supply ratio has increased from 0.1304 to 0.131, suggesting that investors are depositing their assets into exchanges for selling.
Furthermore, Bitcoin’s MVRV Long/Short difference has been on a decline, signaling weaker confidence among long-term holders. This shift in sentiment is also evident in the declining Open Interest per exchange.
Given these conditions, Bitcoin could find its next support around the $58272 resistance level. If a trend reversal occurs, BTC could reclaim $62700. However, the current market sentiment remains bearish.
