With Bitcoin under $40k, indications seem to say this about BTC’s future
In the last 24 hours, the cryptocurrency market has recorded a liquidation of over $200m. Likewise, Bitcoin has breached the critical support level of $40,000 and has now embarked on a downward trend toward the $38,000 region. While this is an indication of a bearish run, price charts and on-chain analysis indicate heavy ongoing accumulation.
A look at the price charts for this coin within the 24-hour period revealed that the Money Flow Index(MFI) at the time of this press was around the 13 regions in an upward trend. Although this region is an indication of increased distribution, the trend is upward. This suggests a gradual move beyond the 20 regions and towards the overbought position.
Source: Trading View
The Trading Volume for Bitcoin at the time of this press was at $25.86b. This represents over 50% increase from the $19.08b trading volume recorded on Sunday. This is suggestive of the fact that despite the plummeting price of the famous cryptocurrency, significant levels of trading continue to take place.
Source: Santiment
While the MFI and the Trading Volume are suggestive of increased activity with the coin despite its steady decline, it is imperative to point out that at the time of this press, distribution also occurred simultaneously. A look at the EMA showed the 50 EMA above the price in a downward trend which is indicative of the bears seeking to take the lead.
Source: Trading View
This was confirmed by the Exchange Netflow (Total) which stood at a negative 55.01 at the time of this press. A negative value for Exchange Netflow (Total) indicates a decreasing reserve suggestive of investors exiting their positions and taking profits.
Source: CryptoQuant
However, a consideration of the Exchange Inflow Spent Output Age
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