After reading this, Bitcoin short traders are going to lose their minds – Bitcoin’s [BTC] price had a precipitous decline in June, when the crypto market plummeted, reaching a low of $18,154 in 2022. However, shortly afterwards, the coin saw a two-month-long upward trend. BTC also managed to surpass $24,000, providing optimism for an imminent huge bull run.
However, recent events may cause a shift in the situation. At the time of writing, BTC was trading at $23,491 with a market size of $449,275,521,406.
A Chicago-based investor with 533.8k Twitter followers, CryptoWhale, has lately stated that it anticipates a Bitcoin market meltdown.
According to BTC’s Twitter account, a bearish divergence emerged on its price charts, signaling a price drop was imminent.
While many had different opinions, most Twitter users seemed to agree with CryptoWhale.
— CryptoWhale (@CryptoWhale) August 17, 2022
However, a few measures demonstrated the exact reverse of what CryptoWhale predicted.
According to Glassnode’s statistics, Bitcoin’s balance on exchanges has hit its lowest level in four years, confirming investors’ resolve to HODL.
The number of Bitcoin addresses with a balance of less than 0.01 BTC, which had been on an upward trend, has declined recently.
In addition to the aforementioned information, the proportion of Bitcoin profit began to climb last week, providing investors encouragement.
On August 12, the BTC supply-to-profit ratio hit a three-month high of 62.03%.
A check at BTC’s chart revealed that after being in a sustained upswing, the currency was following the sell-pressure after August 15 as it was unable to breach $24,000 barrier.
Multiple indicators, such as the Relative Strength Index (RSI), Chaikin Money Flow (CMF), and Exponential Moving Average (EMA) ribbons, pointed to negative market circumstances, raising the likelihood of a decline in the following week.
CMF had a negative divergence as Bitcoin’s price grew during the past week
In addition, a bearish wedge formation has developed on BTC’s chart, signaling a decline. In light of the graph and on-chain data, traders must exercise caution before to making any trades.
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