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- BTC\u2019s open interest dropped sharply when its price plummeted.<\/span><\/em><\/li>\n
- The Fear & Greed index revealed that the market was in a \u201cfear\u201d phase.<\/span><\/em><\/li>\n<\/ul>\n
Bitcoin\u2019s [BTC]<\/span><\/a> price once again dropped under the $26,000 mark, sparking fear among investors. The king of cryptos has been reluctant to turn its price action bullish for months as it failed to breach $30,000. However, if history is to repeat itself, BTC will soon enter a bull market.\u00a0<\/span><\/p>\n
\nRead<\/span> Bitcoin\u2019s [BTC] Price Prediction<\/span><\/a> 2023-24<\/span><\/p>\n
\nThis possibility seemed likely as an important metric showed a similar pattern as in 2019, after which BTC\u2019s price skyrocketed. Not only that, but other indicators also gave a notion that Bitcoin might witness a rally in the near term.\u00a0<\/span><\/p>\n
Bitcoin to ditch the bears?<\/strong><\/h4>\n
James V. Straten, a crypto analyst, pointed out that Bitcoin was trading below the short-term holders cost basis, which was $28,680, for the third consecutive day. A similar pattern was also noted in 2019, when<\/span> BTC<\/span><\/a> left the bear market bottom. Therefore, this gave hope that BTC might witness a bull rally over the coming months. <\/span><\/p>\n
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Currently, #Bitcoin<\/a> is trading below the STH cost basis ($28,680) for the third consecutive day. In June, it traded below for 10 days. <\/p>\n
A similar pattern emerged back in 2019 when we left the bottom of the bear market. #Bitcoin<\/a> went from $12,500 to $6,500 and traded below STH\u2026 pic.twitter.com\/rJALsR4BqK<\/a><\/p>\n
\u2014 James V. Straten (@jimmyvs24) August 20, 2023<\/a><\/p>\n<\/blockquote>\n
A look at Bitcoin\u2019s derivatives market also suggested that the coin\u2019s price could go up. For instance, when BTC\u2019s price plummeted, its open interest also went down. A drop in the metric generally results in a trend reversal.\u00a0<\/span><\/p>\n
![\"\"](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/08\/Coinglass-2.jpg\")
<\/a><\/p>\nSource: Coinglass<\/p>\n<\/div>\n
These metrics support an uptrend<\/strong><\/h4>\n
Another positive development was highlighted by Glassnode Alerts\u2019 tweet. The tweet mentioned that BTC\u2019s aSOPR (7d MA) just reached a 5-month low of 0.99251. This indicated that more investors were selling at a loss. <\/span><\/p>\n
When such episodes happen, they generally indicate a possible market bottom, increasing the chances of a price uptrend in the coming days.\u00a0<\/span><\/p>\n
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\ud83d\udcc9 #Bitcoin<\/a> $BTC<\/a> aSOPR (7d MA) just reached a 5-month low of 0.99251<\/p>\n
Previous 5-month low of 0.99283 was observed on 16 June 2023<\/p>\n
View metric:https:\/\/t.co\/yJqatjFTgP<\/a> pic.twitter.com\/9NK1WlKrsD<\/a><\/p>\n
\u2014 glassnode alerts (@glassnodealerts) August 21, 2023<\/a><\/p>\n<\/blockquote>\n
A few other metrics also looked bullish on<\/span> BTC<\/span><\/a>. For instance, the coin\u2019s exchange reserve was declining, suggesting that it was not under selling pressure. Miners also seemed to be confident in<\/span> BTC,<\/span><\/a> as the miners\u2019 position index (MPI) was green, meaning that they were selling fewer holdings compared to its one-year average.\u00a0<\/span><\/p>\n
\nIs your portfolio green? Check the<\/span> Bitcoin Profit Calculator<\/span><\/a>\u00a0\u00a0<\/span><\/p>\n
\nLike miners, long term holders\u2019 movements in the last seven-days were lower than average, reflecting their confidence in Bitcoin. On top of that, at the time of writing, Bitcoin\u2019s<\/span> Fear & Greed Index<\/span><\/a> had a value of 38, revealing that the market was in a \u201cfear\u201d phase, which is generally followed by a hike in the asset\u2019s value. <\/span><\/p>\n
At press time, BTC was<\/span> trading<\/span><\/a> at $25,953.27 with a market capitalization of over $505 billion.<\/span><\/p>\n
- The Fear & Greed index revealed that the market was in a \u201cfear\u201d phase.<\/span><\/em><\/li>\n<\/ul>\n
![\"\"](\"https:\/\/statics.ambcrypto.com\/wp-content\/uploads\/2023\/08\/CryptoQuant-3.jpg\")