The price action of Bitcoin appears bearish over the last day and now sits at $20,779 after dropping 2.21% over the last day.
The price of the cryptocurrency has ranged from a $20,637 low to a $21,279 high over the past 24 hours and has now dropped 2.28% from its 400 billion dollar market cap to a market cap of $398.8 billion.
BTC isn't as heavily traded today as it was the previous week and has only gained 0.36% in price over the last 7 days.
The price of BTC appeared to be eyeing higher targets last week after hitting its highest daily close since September and breaking through its 100-day moving average.
After several rejections over the past few weeks, the cryptocurrency's price managed to cross over its 100-day moving average resistance line on the daily timeframe.
This is the first time Bitcoin has succeeded in breaking this moving average since September, and if the price continues to trade above it this way, it will be the longest stretch since April.
In the first few days of November, Bitcoin and the rest of the cryptocurrencies started to rise. Bitcoin, in particular, rose by more than 10%, hitting price increases unseen since mid-2022.
This new wave of bullishness renewed the hopes of traders and investors across the market, and many began to anticipate further price growth. However, the daily RSI started to hint at a possible price correction, and the price of Bitcoin eventually declined after breaking through $21,000.
Bitcoin trades at about $20,700, while more than 1 million addresses now hold almost 560,000 Bitcoin. The Daily RSI is starting to trend toward the overbought zone.
The daily MACD shows that the MACD line is above the signal line, indicating that the bulls are still in control. However, there is a real possibility of the bears wrestling control from the hands of the bulls as Bitcoin continues to test its 100-day simple moving average.
The futures market is one of the key influencers for the recent bitcoin price action. Therefore, determining where bitcoin is likely to go next should be done by assessing the sentiment of futures traders.
Judging by market research published by the blockchain data and analytics platform, CryptoQuant, one of the most useful metrics for determining what bitcoin is likely to do is the Taker Buy-Sell Ratio, which tries to quantify the traders' attitude.
This metric shows who among the bears or bulls is stronger. Values of more than one are deemed bullish, whereas those less than one are deemed bearish.
According to CryptoQuant, the Taker Buy-Sell Ratio has recently moved below the one mark, showing that the bears may now be getting stronger as more traders and investors aggressively open short positions on the market.
If the bitcoin Taker Buy-Sell Ratio metric continues to trade below 1, bitcoin (and the rest of the crypto market) may see significant price drops in the short term, similar to the April-May 2022 drops.
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