Will Bitcoin (BTC) Crash Again? Key Data Predicts What’s Next

Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, seems bearish and will expertise a notable value drop within the coming hours or days. On October 18, 2024, BTC hinted at a doable value correction because it fashioned a bearish candlestick sample at a robust resistance degree.

Bitcoin (BTC) technical evaluation and upcoming ranges

Based on knowledgeable technical evaluation, BTC is at present dealing with robust resistance on the higher restrict of a descending channel sample. Since March 2024, BTC has reached this degree greater than six occasions, every time experiencing notable promoting stress and a value drop of greater than 20%.

Nonetheless, the formation of a bearish engulfed candlestick sample on the day by day timeframe suggests an identical value decline within the coming days.

Along with this bearish outlook on the day by day timeframe, a better take a look at the BTC chart over the four-hour timeframe reveals that the world’s largest cryptocurrency is at present discovering help on the $66,700 degree. Moreover, BTC consolidated between $66,700 and $68,000 over the previous two buying and selling days.

Primarily based on the latest value momentum, if BTC breaks the decrease certain of the consolidation zone and closes a day by day candle under the USD 66,500 degree, there’s a robust chance that the asset may fall by greater than 6% to succeed in the USD 62,500 degree.

Bearish sentiment confirmed by on-chain metrics

BTC’s destructive outlook is additional supported by on-chain metrics. Based on the on-chain analytics firm Mint glassBTC’s Lengthy/Quick ratio at present stands at 0.968, indicating bearish sentiment amongst merchants. Moreover, future open curiosity has fallen 3.43% within the final 24 hours and 1.85% within the final 24 hours.

This drop in open curiosity signifies that merchants’ lengthy positions are being liquidated or merchants are exiting their positions, seemingly out of concern of a value crash.

Combining these on-chain metrics with the technical evaluation, it seems that bears are at present dominating the asset and have the potential to trigger an enormous value drop.

Present value momentum

On the time of writing, BTC is buying and selling round $66,920 and has skilled a value drop of over 1.8% up to now 24 hours. Throughout the identical interval, buying and selling quantity fell by 21%, indicating decrease dealer participation because of present market sentiment.