Bitcoin’s performance over the past month did nothing to excite investors, with the cryptocurrency only seeing slight price increases. However, there is still a wide range of perspectives. Some traders are anticipating a price increase, while others are bracing for further drops.
Surprisingly, a clearer picture of the issue may be gleaned by assessing certain analytics and market data. As this was being written, the price of Bitcoin was $19,078, a loss of over 5% from its weekly high. All throughout the world, economies were suffering at the time.
Are Bad Times Ahead?
Multiple economists have predicted greater Bitcoin drops in the coming days amidst widespread social media speculation. For instance, MAC D, an analyst and author of CryptoQuant, just released a research evaluating Bitcoin. On September 13, he disclosed, 11,900 BTC were deposited into Coinbase.
After that, on September 13, just before the Bitcoin price dropped dramatically, 31,200 BTCs were transferred from Coinbase to derivative exchanges. He said that Bitcoin (BTC) holdings increased dramatically within derivatives exchanges before being dumped and that whales appear to have executed short bets (on purpose) on derivative exchanges, hence bringing Bitcoin prices down.
The rising volume of BTC shorts on derivative exchanges suggests that the price of Bitcoin may fall in the near future. Mac, a well-known bitcoin influencer, has spoken out about his thoughts on Bitcoin’s future. Experts predict BTC will reach $20,000 next week before plunging to new lows below $17,000.
Some data were contradictory to the highlighted research and prognosis, which indicated that Bitcoin and the market as a whole will be experiencing darker days in the next sessions. Bitcoin’s exchange inflows, for instance, have dropped significantly in recent weeks, which is optimistic.
The token’s MVRV Ration also increased, indicating a possible price increase in the near future. The number of Bitcoin wallets that contain a positive balance has increased dramatically during the previous week. That’s proof that people have faith in the main cryptocurrency.
Nonetheless, the number seemed to back downs during this publishing. Meanwhile, there is nothing definite in any of the datasets concerning the market. Bitcoin’s future value in the following weeks can only be determined by time.
Though most cryptocurrencies were attempting uptrends at the time of publication, the cryptocurrency market was dominated by bears. Near-term price trends are predominantly bearish, suggesting greater declines could occur in the coming days.