Ki Yong Joo, CryptoQuent’s CEO and network analyst, says that Bitcoin (BTC) is currently neutral to short-term bearish trends.
There are two main indicators that have been useful in identifying setbacks in an ongoing bullish cycle.
First, when the Coinbase bonus came out, which means that BTC trades higher on Coinbase than, for example, on Binance, BTC has shown progress. Second, Bitcoin’s momentum increased when it saw a massive coin base boom.
However, in recent days, none of these indicators showed resilience as the index fell into negative territory on 24 January.
When will Bitcoin market sentiment get better again?
Bitcoin is likely to see another bullish run if Premium Coinbase continues to show a major hangover.
The combination of these two indicators indicates that the rich are accumulating bitcoins again. Explanation of the key:
“I will remain bearish until there is a big Coinbase bonus and Coinbase booster. $ BTC needs an immediate influx of dollars from institutional investors to start the next bullish round.”
A common story about Bitcoin’s latest rally is that individuals and institutional investors with high net worth buy BTC for every drop.
Apart from the two indicators related to Coinbase, smooth currency flow is another important indicator that a new height can detect.
The key notes that the flow of stack coins to exchanges is often a strong signal in the network for growth because it shows limited capital inflows into the cryptocurrency market.
For example, when the steady inflow of currency picked up on January 22, BTC continued to increase by about 6% over the next 24 hours. He said:
“This indicator is one of the strong network signals with very good performance. You can expect immediate growth in the short term, regardless of the general direction of the market. This is the number of stable deposits in all exchanges, ie investors try to send stable currencies to the exchanges to buy a cryptocurrency. For example, if this value reaches 80, we can assume that 80 people try to put on the stock exchange in a block of 15 seconds.
How low will BTC?
In the foreseeable future, if Bitcoin continues to trade sideways, some traders expect Bitcoin to fall to $ 27,000.
A trader under a pseudonym known as “CJ” shared a possible scenario where Bitcoin could fall to between $ 26,000 and $ 27,000.
But even in the worst case, analysts generally do not see the Bitcoin price dropping to $ 20,000. The seller wrote:
“It may be this channel that prevents the 20K tests again. From this chart, the best place is to fall between 23-27K.”
While the short-term indicators point to a slightly bearish outlook, they do not indicate the possibility of a deep correction.
Bitcoin’s decline to around $ 20,000, a previous all-time high, means a 35% decline from current levels. Such an incident is unlikely, but dealers should be aware of a potential black swan event, such as regulatory restrictions or a high-profile lawsuit against a major player in the industry.