bitcoins [BTC] almost 5% recovery on Oct 14 might not be the icing on the cake needed for a bullish revival. According to BaroVirtual, an analyst at CryptoQuant, such events occur in a full-fledged bear market. indicated a catastrophic result.
Here is AMBCrypto Bitcoin Price Prediction for 2022-2023
In its latest analysis, BaroVirtual noted that BTC’s close/low ratio indicated that the bounce would eventually result in a price correction.
Prophecy to reality?
Interestingly, the analyst’s projection seemed to come to life quickly. This was because it was not long before Bitcoin succumbed to bear bidding. At the time of writing, BTC was trading at $19,177, a decrease of 2.74% in the last 24 hours. However, it did not appear that the decline would end at 2% to 3%.
According to the four-hour chart, BTC sellers had more of an advantage over the strength of the buyers. The Directional Movement Index (DMI) showed that the upside (green), reflecting the buyer’s advantage, was 16.77.
Conversely, the negative DMI (red) favored sellers above the positive at 27.54. While the bulls may have hoped that the directional force was not strong enough, the Average Directional Index (ADX) proved otherwise. With ADX (yellow) at 32.23, it was almost inevitable that BTC’s bearish momentum could last for a while before any bullish signs were revealed.
Therefore, the defense zone from which BTC bulls may have hoped that a run would not be any time soon.
More so, BTC traders also appeared to have recently scaled back centralized trading activities. According to on-chain data intelligence platform Glassnode, the number of exchange deposits had hit new lows, with the latest 1,836,483 in two years.
The previous 2-year low of 1,837.155 was observed on October 13, 2022
See metric: https://t.co/v3uKq3W0Vn pic.twitter.com/Bnro0E7UJb
— glassnode alerts (@glassnodealerts) October 15, 2022
Because of this, investors were less likely to have made a profit. For others, it could mean that it was time to evaluate your BTC portfolio.
What else is going on?
According to on-chain metrics, BTC traders were not following reduced exchange activities like Glassnode revealed that futures open interest was at an excellent time. As of October 14, BTC futures open interest across all exchanges was approximately $12.15 billion.
The current level was similar to what it has been since September 15. The implication was that traders were looking to profit from the futures market as spot BTC was less likely to produce significant profits.
Furthermore, the forex entry and exit indications did not show a clear signal that the bulls rejoice this October. According to Santimentothe flow in and out of the exchange was close to 5189 and 6579, respectively.
So while there has been some selling pressure, there has also been buying momentum to match. Therefore, it was unclear who would win the Bitcoin momentum battle.