The king of cryptocurrency, Bitcoin [BTC], suffered a massive plunge in its price in June when the crypto market crashed, marking 2022 lowest of $18,154.
However, soon after, the coin gained a steady uptrend for the next two months. BTC also managed to cross the $24,000 mark, giving hope for a massive bull run soon.
But with recent developments, the situation may witness a change.
At the time of writing, BTC was trading below the $24,000 mark, at $23,491, with a market capitalization of $449,275,521,406.
Source: CoinMarketCap
What’s going on?
A Chicago-based investor CryptoWhale with 533.8k followers on Twitter, recently tweeted that it expects a Bitcoin market crash.
According to the Twitter handle, a bearish divergence formed on BTC’s charts, indicating a plunge in its price was around the corner.
While many had different opinions, most Twitter users seemed to agree with CryptoWhale.
#Bitcoin Crash Incoming 🐳 pic.twitter.com/W4eiAnLtkT
— CryptoWhale (@CryptoWhale) August 17, 2022
But, interestingly, a few metrics highlighted just the opposite of CryptoWhale’s prediction.
Glassnode’s data showed that Bitcoin’s balance on exchanges reached a four-year low, indicating investors’ conviction to HODL.
Source: Glassnode
However, Bitcoin’s number of addresses with a balance ≥ 0.01, which was on a constant uptrend, showed a decline lately.
Source: Glassnode
To add to the aforementioned data, last week, the percentage supply of Bitcoin profit also started to increase, giving hope to investors.
BTC’s percent supply in profit reached a three-month high of 62.03% on 12 August.
Source: Glassnode
Well, a look at BTC’s chart showed that after being on a gradual uptrend, the coin was following the sell-pressure post 15 August as it was unable to break its resistance at the $24,000 mark.
Multiple indicators, including the Relative Strength Index (RSI), Chaikin Money Flow (CMF), and Exponential Moving Average (EMA) ribbons, suggested bearish market conditions, further increasing the possibility of a downtrend in the coming week.
While Bitcoin’s price increased during the last week, a bearish divergence was seen on CMF (blue trend line).
Source: TradingView
Moreover, a bearish wedge pattern formed on BTC’s chart, indicating a downfall. Therefore, considering the chart and on-chain metrics traders need to be careful before making any moves.
