Santiment, the platform that studies blockchain, said in a post yesterday that the cryptocurrency market might not have a downturn for a while. This happened after the market got better. Bitcoin and other cryptocurrencies became worth a lot more.
👍 If you’re concerned about a #crypto retrace, note that #Bitcoin still maintains a high pace of active addresses. Additionally, the top market cap asset is seeing a high level of dormant tokens now moving, typically synonymous with #bullish conditions. https://t.co/bvjDL2Shga pic.twitter.com/NvxKkQpkg8
— Santiment (@santimentfeed) October 26, 2023
As per the post, BTC has a lot of people using it. Also, a lot of inactive cryptocurrency tokens are now starting to move. In the past, this has been connected to positive behavior in the market, according to Santiment.
In simple terms, the price of BTC is at a crucial point because it is sitting at the $34K support level. The price of the market leader went up to $35,280, but it has been slowly going down for the past two days. So right now, the cryptocurrency might go down to $31,400 in the next few days.
If the price of BTC goes below $34K in the next day or two, it could show that the market will go up. If sellers keep pushing, the market leader’s price might go down to $28,760 soon.
This bearish idea is supported by the fact that a bearish pattern has appeared on BTC’s chart. This pattern could mean that the price of BTC might go down soon.
At the same time, the RSI on the daily chart showed that people buying BTC were getting weaker. Additionally, the indicator showed that BTC was in very overbought territory, which traders usually see as a good time to sell.
However, BTC might still go up in the next few days because the bearish rising triangle that had formed is a pattern that lasts for a medium amount of time. Later, the biggest company in the market might try to reach the $36,900 level in the next week. If the price of BTC goes below $34K in the next 2 days, it could change the positive outlook for its price.
This article only gives information for learning and knowledge. This article is not giving any financial or other kind of advice.