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Bitcoin falls below critical level – top on chain analyst turns bearish




Bitcoin has just dropped below $ 47,000, a top analyst warns of further losses. How low can BTC fall now?

Bitcoin loses trend line

The Bitcoin bulls unfortunately had to admit defeat tonight: BTC was able to rise to local highs of up to 49,150 dollars, but then the sell-off began. The number 1 crypto currency fell through all resistance to $ 46,700, where the coin is currently listed.

Bitcoin’s weekly chart shows the bitter price decline. Source: Tradingview.com

A minus of more than 3% within the last 24 hours. BTC also had to give up the trend line. And: Further losses are possible. The popular on-chain analyst Will Clemente, for example, suggests in a new tweet.

He writes:

“I’m bearish in the short term.

The illiquid supply ratio has fallen and the coins are being moved to the exchanges. I also see some whale sales. “

Clemente shows a chart that shows the decline in whale populations. Clemente adds:

“Here is the decline in whale populations. Maybe they’re just waiting for a better start, but not much has happened after the big climb a few weeks ago. “

Background: A decline in illiquid coins could indicate that long-term investors are shifting BTC into more liquid assets. The result: the supply shock, which actually increases prices, does not come into play.

Many users fear a severe correction after Clemente’s comment. The analyst contradicts, however, explains: He only presents important data and is convinced of Bitcoin’s success since the low $ 30,000 prices. His conclusion: The recent losses may only be a temporary setback before Bitcoin resumes its upward trend. Clemente:

“Nothing speaks against a setback before the continuation …”

BTC exchanges are seeing strong inflows

Clemente’s thesis is confirmed by blockchain data provider Cryptoquant.com. Its CEO Ki Young Ju also emphasizes in a recent tweet: Bitcoin does not look good in the short term. Ju cites the liquidity on the sales side as the reason. The stock exchanges are currently seeing strong inflows – an indication of an imminent sell-off.

The fact is: Bitcoin has to “bounce” from here, that is, bounce off the low point and move up again for a short time in order to prevent further losses. If Bitcoin does not succeed in this, a sharp decline is very likely. In that case, the next support area is waiting for the cryptocurrency number 1 at 42,000 dollars.

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Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.
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