The King of Cryptocurrency, Bitcoin [BTC]suffered a massive drop in price in June when the crypto market crashed, marking a 2022 low at $18,154.
However, soon after, the coin saw a steady uptrend over the following two months. BTC also managed to breach the $24,000 mark, raising hopes for a massive bull run soon.
But with recent developments, the situation could change.
At the time of writing, BTC was trading below $24,000 at $23,491 with a market cap of $449,275,521,406.
What’s going on?
Chicago-based investor CryptoWhale with 533,800 Twitter followers recently tweeted that he expects a Bitcoin stock market crash.
According to the Twitter handle, a bearish divergence has formed on BTC’s charts, indicating that a drop in its price is imminent.
While many had different opinions, most Twitter users seemed to agree with CryptoWhale.
— CryptoWhale (@CryptoWhale) August 17, 2022
But, interestingly, a few metrics showed the opposite of CryptoWhale’s prediction.
Data from Glassnode showed Bitcoin’s balance on exchanges hit a four-year low, indicating investor belief in HODL.
However, the number of Bitcoin addresses with a balance ≥ 0.01, which was on a steady upward trend, has shown a decline lately.
To add to the aforementioned data, last week the Bitcoin profit supply percentage also started to rise, giving hope to investors.
BTC’s supply percentage in earnings hit a three-month high of 62.03% on August 12.
Well, a look at the BTC chart showed that after following a gradual uptrend, the coin followed the selling pressure after August 15th as it was unable to break its resistance at $24,000. .
Several indicators, including the Relative Strength Index (RSI), Chaikin Money Flow (CMF) and Exponential Moving Average (EMA) ribbons, suggested bearish market conditions, further increasing the possibility of a downtrend in the week. coming.
As Bitcoin price rose over the past week, a bearish divergence was seen on CMF (blue trendline).
Additionally, a bearish wedge pattern has formed on the BTC chart, indicating a fall. Therefore, considering the chart and on-chain metrics, traders should be careful before doing anything.