Bitcoin

Momentum

when

Bitcoin prices cratered on July 4 before plunging some more a day later. However, by the close of Friday, the bar ended up with a long lower wick, with demand spilling over the weekend. As BTC prices <a href="https://bitcoinist.com/bitcoin-down-mt-gox-distribution-spooks-investors/" target="_blank" rel="noopener ">stabilize</a>, there may be hints that the downtrend is over, but not according to this analyst. 
<h2 id="bitcoin-remains-under-immense-selling-pressure-here-s-why">Bitcoin Remains Under Immense Selling Pressure: Here’s Why</h2> 
Citing on-chain data, the analyst <a class="editor-rtfLink" href="https://x.com/OnChainCollege/status/1809963515102269827" target="_blank" rel="noopener nofollow">said</a> the downtrend remains, and sellers have the upper hand. Pointing to the Bitcoin MVRV Momentum indicator, the trader noted that the reading is in negative territory for the first time in over 16 months. 
<img loading="lazy" decoding="async" class="size-full wp-image-309237" src="https://bitcoinist.com/wp-content/uploads/2024/07/GR5HwpyaoAAxnlT.jpg?resize=1024%2C508" alt="Bitcoin is bearish | Source: @OnChainCollege via X" width="1024" height="508" srcset="https://bitcoinist.com/wp-content/uploads/2024/07/GR5HwpyaoAAxnlT.jpg?resize=1024%2C508?w=1531 1531w, https://bitcoinist.com/wp-content/uploads/2024/07/GR5HwpyaoAAxnlT.jpg?resize=1024%2C508?w=640 640w, https://bitcoinist.com/wp-content/uploads/2024/07/GR5HwpyaoAAxnlT.jpg?resize=1024%2C508?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/07/GR5HwpyaoAAxnlT.jpg?resize=1024%2C508?w=980 980w, https://bitcoinist.com/wp-content/uploads/2024/07/GR5HwpyaoAAxnlT.jpg?resize=1024%2C508?w=360 360w, https://bitcoinist.com/wp-content/uploads/2024/07/GR5HwpyaoAAxnlT.jpg?resize=1024%2C508?w=750 750w, https://bitcoinist.com/wp-content/uploads/2024/07/GR5HwpyaoAAxnlT.jpg?resize=1024%2C508?w=1140 1140w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"> 
The last time this happened was in March 2023. Although prices recovered a few months after plateauing throughout early Q3 2023 before the lift-off in Q4 2024, whether the current formation will follow this script remains to be seen. 
The Bitcoin MVRV Momentum indicator is a technical tool. It derives its data from on-chain readings, comparing the market value to the realized value of BTC. These two readings are often used to gauge overall market sentiment. 
When the indicator trends above the 1-year moving average, Bitcoin prices tend to float higher. The chart shows that when prices were ripping higher, blasting above $70,000 to as high as $73,800, the indicator was firm above the moving average. 
The indicator is below the moving average at press time, suggesting weakness across the board. If this trend continues, it may mean that the market is swinging bearish after overheating in the first half of the year. <a href="https://www.tradingview.com/x/aRe04UDO/" rel="nofollow noopener" target="_blank"><img loading="lazy" decoding="async" class="size-full" src="https://www.tradingview.com/x/aRe04UDO/" alt="Bitcoin price trending downwards on the daily chart | Source: BTCUSDT on Binance, TradingView" width="1233" height="592"></a> 
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Still, reading from the chart and especially considering the recovery in March 2023 when the same scenario was printed, investors are facing a dilemma. The indicator suggests market weakness, allowing buyers to double down. 
At the same time, the breakout from the 12-month moving average could mean that bears are getting started, and more losses could be in the offing.&nbsp;&nbsp; 
<h2 id="should-btc-traders-be-patient">Should BTC Traders Be Patient?</h2> 
The state of affairs means traders should be patient and check the market thoroughly. So far, when BTC prices plunged last week, they have become more attractive to sell, fanning the downward momentum. 
This, in turn, presented an opportunity for buyers to buy back at a discount, forcing a short squeeze and liquidating leverage sellers in the process. 
<img loading="lazy" decoding="async" class="size-full wp-image-309238" src="https://bitcoinist.com/wp-content/uploads/2024/07/GR70nCXXYAA6mOQ.jpg?resize=1024%2C576" alt="BTC speculators are in red | Source: @AxelAdlerJr via X" width="1024" height="576" srcset="https://bitcoinist.com/wp-content/uploads/2024/07/GR70nCXXYAA6mOQ.jpg?resize=1024%2C576?w=2048 2048w, https://bitcoinist.com/wp-content/uploads/2024/07/GR70nCXXYAA6mOQ.jpg?resize=1024%2C576?w=640 640w, https://bitcoinist.com/wp-content/uploads/2024/07/GR70nCXXYAA6mOQ.jpg?resize=1024%2C576?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/07/GR70nCXXYAA6mOQ.jpg?resize=1024%2C576?w=980 980w, https://bitcoinist.com/wp-content/uploads/2024/07/GR70nCXXYAA6mOQ.jpg?resize=1024%2C576?w=1536 1536w, https://bitcoinist.com/wp-content/uploads/2024/07/GR70nCXXYAA6mOQ.jpg?resize=1024%2C576?w=750 750w, https://bitcoinist.com/wp-content/uploads/2024/07/GR70nCXXYAA6mOQ.jpg?resize=1024%2C576?w=1140 1140w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"> 
Whether leverage traders will capitulate and exit after gains in the last 48 hours remains to be known. Even so, one on-chain analyst <a class="editor-rtfLink" href="https://x.com/AxelAdlerJr/status/1810153058061430895" target="_blank" rel="noopener nofollow">notes</a> that unrealized losses held by short-term holders (STHs) remain high. If prices drop and STHs panic by selling, it could trigger a rapid price collapse.

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