Bitcoin observes a few different bearish signals going off despite strong recovery above $44k, could it be a dead cat’s bounce?
On-Chain Data Shows Bitcoin Miners Have Started Selling, Funding Rates Have Turned Negative
As explained by a CryptoQuant post, a bunch of bearish Bitcoin signals have gone off despite some fresh movement up.
First, the miners reserve has started to decline. This indicator shows the total number of coins that miners are holding in their wallets.
A downtrend in the metric’s value suggests miners have started sending their Bitcoin to exchanges for selling purposes.
Second is the Long-Term Holder SOPR (LTHSOPR) that shows the degree of realized profits and loss for those coins that haven’t moved on the chain since at least 155 days (which means these coins belong to long-term holders).
This metric has also been showing low values, implying these long-term holders are more likely to sell their coins right now.
Here is a chart showing the trend in both these indicators for Bitcoin:
The BTC miners reserve and the LTH SOPR | Source: CryptoQuant
Next is the Bitcoin exchange reserve, an indicator that measures the total number of coins present on wallets of all centralized exchanges.
The below chart shows how the reserve’s value has changed recently:
The indicator seems to showing some uptrend | Source: CryptoQuant
As the graph shows, the Bitcoin exchange reserve has started trending up after a long period of constant decline. When the metric’s value goes up, it means investors are starting to send their coins to exchanges for withdrawing to fiat or purchasing altcoins.
Finally, there is the funding rate, which highlights whether investors are finding long positions better or short ones.
funding rates look to be moving negative again | Source: CryptoQuant
As the above chart shows, the BTC funding rates have dipped below zero, signifying that short positions are more hot right now.
What Do These Indicators Mean For BTC’s Price?
All of these signals show a bearish outcome in the short term at least. However, the price has started moving up for now nonetheless.
It’s possible this recovery above $44k is just a dead cat’s jump, and that the price would move down soon as these indicators suggest, but there is still some chance this recovery holds.
At the time of writing, Bitcoin’s price floats around $44k, down 7% in the last 7 days. The below chart shows the trend in the price of the coin over the last five days.
BTC's price has started moving up after making a touch of $39.6k | Source: BTCUSD on TradingView News Source
Mike Novogratz Expects Bitcoin to Stay Above $42,000
Mike Novogratz says that it would be surprising to see Bitcoin below $40,000
Galaxy Digital CEO Mike Novogratz believes that the price of Bitcoin is not going to fall below $40,000.
The crypto mogul told CNBC host Joe Kernen earlier today that he would be surprised to see the biggest cryptocurrency revisiting the aforementioned price level.
"I think $42,000 should hold, that should be the bottom of this move. It would surprise me if it went below $40,000," says @Novogratz on #Bitcoin's latest dip $BTC. "There's so many more people participating on it. It's hard for me to see if going below." pic.twitter.com/4VuYIw01dF— Squawk Box (@SquawkCNBC) December 8, 2021
Novogratz is convinced that $42,000 will remain at the bottom of the ongoing correction.
I think $42,000 should hold, that should be the bottom of this move. It would surprise me if it went below $40,000.
Bitcoin suddenly collapsed 21% on Dec. 4, making crypto traders dust off their $20,000 charts.
The cryptocurrency managed to recover to $52,000 on Dec. 8, but it was rejected there.
At press time, Bitcoin is trading down 2.7%, slightly above the $49,000 level on cryptocurrency exchange Bitstamp.
Novogratz claims that Bitcoin going below $40,000 would result in a significant sentiment shift, adding that such a dramatic drop would make him scratch his head.
The crypto boss remains optimistic due to the increasing number of people participating in the industry:
There’s so many more people participating on it. It’s hard for me to see if going below.
However, as reported by U.Today, growth investor Louis Navellier recently said that Bitcoin could drop to $10,000 if it were to lose the do-or-die $28,500 support level that managed to hold during a dramatic correction in summer.
After a streak of unsuccessful predictions in 2018, the hedge fund veteran made a prescient call about Bitcoin reclaiming its previous record high of $20,000 by the end of 2020.
Bitcoin is now up 73% in 2021, significantly underperforming some of the top altcoins.
Top Trader Says Ethereum Looks Exceptionally Bullish, Unveils Targets for Bitcoin and Explosive Altcoin Terra
A popular crypto analyst believes Ethereum (ETH), Bitcoin (BTC) and one altcoin are about to blast off and leave the recent market-wide slump in the dust.
The pseudonymous crypto strategist and trader Kaleo tells his 454,000 Twitter followers that ETH’s time to shine has arrived as the “king” of the layer-1 blockchain protocols.
The analyst says,
“ETH is so bullish after the most recent flush it’s not even funny.
We’ve seen a major rotation play among the alt [Layer-1s] the past few months.
It only makes sense that the king of the L1s finally has a chance to suck liquidity from the rest of the market and have a run of its own.”
Ethereum is about even on the day, trading for $4,346 at time of writing.
Kaleo next looks at Bitcoin and says he still believes the top crypto will reach at least $100,000 during the current cycle.
“I’ve said it before and I’ll say it again – I still expect to see Bitcoin have a parabolic move to top out at $100K+ this cycle.
I’ll gladly start scaling out around $150K. I expect it to go higher, but I’m not concerned with nailing the top. Until then, just keep stacking.”
BTC currently sits at $50,900 after having battled back from a flash-crash low around the $43,500 level on December 3rd.
Lastly, the crypto analyst lays out his price prediction for the Terra (LUNA) protocol, whose native token LUNA underpins a suite of decentralized stablecoins.
Kaleo tells his followers that Terra reaching the $100 threshold is inevitable.
“LUNA going to $100 from here is only a matter of time.”
LUNA has seen some wild price action in recent days, with the altcoin tumbling from $69.66 to $53.64 late last week before surging to $77.37 on Sunday.
The 10th-ranked crypto has since corrected but is back up 5% on the day to $70.74.
Bitcoin SV Coin Struggling Near Vital DMA lines, In Sideways Consolidation
- Bitcoin SV coin is trading sideways over the larger time frame, with a substantial consolidation over the past few months.
- The crypto asset is currently placed under the narrow range of $100 to $200 while trying to suppress its 20, 50, 100, and 200-day lines.
- The pair of BTC/BTC is trading at 0.003027 BTC with an intraday gain of +3.21%, and the ratio of BTC/ETH is CMP at 0.03489 ETH with a minor 24-hour change of +1.91%.
Bitcoin SV coin at the monthly chart is trading sideways, with solid consolidation. Currently, the coin is trying to suppress its all vital moving averages of 20, 50, 100, and 200-day lines. The overall short to long-term trend is still neutral, as it is struggling near all vital moving averages. Volume activity over the chart increases and needs to grow strongly for the breakout from the sideways pattern. The breakout from the sideways pattern will create a substantial upside in upcoming trading sessions, which needs supportive volume activity to grow. The sustainability above the breakout level of $200, with supportive volume activity, will boost more upside to $240 to $270. Support on the lower side is $125 and $100, whereas resistance on the higher side is $180 and $200.
Bitcoin SV coin is trading under the roller coaster at the 4-hour time frame
Bitcoin SV coin is trading under the roller coaster at the 4-hour time frame. Meanwhile, the technical parameters presently showcase substantial volatility, with good volume activity. Volume activity at the weekly chart is higher and needs to maintain above its average volume activity. BSV price is trading at $149 with an intraday drop of -1.84%, and the volume to market cap ratio is 0.2866.
relative Strength Index (CAUTION): Bitcoin SV coin RSI is heading lower, after testing the overbought zone. The coin moves lower with a substantial upsurge from the lower levels and RSI at 54.
Moving Average Convergence Divergence (CAUTION): The daily chart projects a caution trend with a bearish crossover at the 4-hour time frame. The buyer’s signal line (green) is heading towards the seller’s line (red) for the upcoming negative crossover.
Support levels: $125 and $100
Resistance levels: $180 and $200.
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.