Watching certain indicators gives an indication of a possible Bitcoin price drop. Bitcoin (BTC) price hovers around the $23,000 range as high volatility has engulfed the cryptocurrency in recent days. After opening the week well above the $24,000 mark, Bitcoin is now trading in the $23,000 range. Meanwhile, recent trading activity by short-term investors indicates a possible further decline in the price of BTC. .
Imminent Bitcoin price drop in the near future?
Due to the short-term selling trend of investors, it seems that there is a possibility of a price drop. The same is reflected in technical indicators. Although Bitcoin has formed a rising wedge pattern, the outlook is negative for the asset. According to CryptoQuant analysis, there is a negative divergence in the RSI and MACD oscillators below the resistance line.
“Below the resistance line, we see negative divergence on the RSI and MACD oscillators. These could be an early sign of the possibility of a wedge break.”
Likewise, another indicator, the Spent Production Utility Index (SOPR) indicates a possible price drop with a clear downward trend. “Short-term investor SOPR has reached level 1 in a downtrend.” SOPR is calculated as a ratio between the amount realized in USD and the amount spent on creating a product. A downtrend in SOPR generally reflects a selling environment among investors to hedge against potential losses.
Next level of support
Meanwhile, Bitcoin (BTC) price barely deviated from the $23,200 level on Saturday. At the time of writing, Bitcoin price is at $23,199.95, up 0.79% in the last 24 hours, according to CoinMarketCap. On a weekly basis, the top cryptocurrency is down 5.33%. There is a slowdown in the upward momentum of Bitcoin price. The analysis indicated that if BTC fails to maintain its current price range, it could bounce back towards the $22,600 support.