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This Metric Hints Bitcoin Bulls Might Be In Trouble

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VOC, Voice of Crypto, Bitcoin, BTC

Key Insights

  • The flagship cryptocurrency slipped below the $18,250 support and hit ranges as low as the $15,000 zone.
  • According to data from CoinMarketCap, Bitcoin is currently down by 16% over the last week and has slightly recovered by 5% in the previous 24 hours.
  • According to this analyst, Bitcoin is only recovering because it is retesting the $17,500 lows it made in June.

In the aftermath of the liquidity crisis that rocked the foundation of the distressed exchange, FTX has affected the entire cryptocurrency market, including Bitcoin.

The flagship cryptocurrency slipped below the $18,250 support and hit ranges as low as the $15,000 zone.

The consumer price index (CPI) figures for October came in lower than predicted, with inflation climbing 7.7% instead of the expected 8% and lower than September’s 8.2% price increase.

This and several other CPI-related factors helped to add $15 billion to Bitcoin’s already-declining market cap in less than 15 minutes, fueling the comeback of Bitcoin and several other altcoins.

According to data from CoinMarketCap, BTC is currently down by 16% over the last week and has slightly recovered by 5% in the previous 24 hours.

Tokenomics on Bitcoin, VOC, Voice of crypto

Tokenomics on Bitcoin | Source: CoinMarketCap

The cryptocurrency currently trades at the $17,000 zone at the time of writing and has ranged between $18,050 and $16,290 over the last 24 hours.

Bitcoin’s Relative Strength Index [RSI] Plummets to All-Time Low

According to the pseudonymous crypto analyst on Twitter, PlanB, Bitcoin’s RSI has plunged to an all-time low.

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In a tweet, the crypto analyst mentioned that Bitcoin has “never been weaker.”

A quick look at the cryptocurrency’s monthly chart shows that Bitcoin has never been weaker, as far as its relative strength index is concerned.

As noted by the crypto analyst, the relative strength of the largest and flagship cryptocurrency has fallen below its previous record low of 43.7, set in June 2022, to a value of 40.5 in the latest market dip.

Chart showing bitcoin’s drop Relative Strength, VOC, Voice of crypto

Chart showing bitcoin’s drop Relative Strength | Source: PlanB/Twitter

As noted by an analyst from the crypto data collection platform, CryptoQuant, an increasing number of medium-term Bitcoin holders who bought $BTC less than a year ago are sending their tokens to exchanges to be sold.

Chart showing Bitcoin’s exchange inflow and pric, VOC, Voice of crypto

Chart showing Bitcoin’s exchange inflow and price | Source: CryptoQuant

The CryptoQuant analyst notes that this, among others, is a bearish signal.

Bitcoin’s price action over the last 48 hours has been bearish, as noted by another analyst on Twitter.

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According to this analyst, Bitcoin is only recovering because it is retesting the $17,500 lows it made in June.

Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

 

Jim Haastrup is a freelance blockchain and metaverse writer. He helps founders, investors, startups, crypto, and blockchain enthusiasts connect with their audience and win investment through the written word.

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