In a recent report, CryptoQuant analyst BaroVirtual expressed concerns about the price of Bitcoin (BTC), suggesting that it could fall below $25,000 if bearish sentiments persist in the market.
BaroVirtual’s conclusion was based on an evaluation of BTC’s Coin Days Destroyed (CDD) using a 21-day moving average. CDD measures the number of cryptocurrency coins that have been inactive for a specific period of time and then suddenly moved. CDD is calculated by multiplying the number of inactive coins by the number of days they have been inactive.
BaroVirtual highlighted that BTC’s CDD metric indicated three instances of local accumulation on March 15, March 31, and April 12. However, starting from April 20, a period of local distribution began, indicating that investors were selling their holdings, resulting in either stagnant or slightly decreasing prices.
This leads to a conclusion that there is a potential danger of falling to the $24,500-25,000 range, which aligns with the bearish head and shoulders pattern. Despite BTC being in this phase, Baro added,
“Bitcoin is still moving within a local uptrend.”
BTC’s Current Status
At press time, BTC was trading at $27,447.73. Since reaching its peak of $30,967 on April 14, the price has declined by 13%.
On the daily chart, BTC’s momentum indicator, the Relative Strength Index (RSI), is below the neutral spot of 54, resting at 41.29. With a current downtrend, the selling pressure has surpassed accumulation.
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