- Bitcoin price witnessed massive 12.5:1 ratio of profit vs transactions in loss within first two trading hours of Monday.
- Proponents note traders' confidence in Bitcoin price reclaiming the $40,000 mark are slim.
- Analysts have predicted a bearish medium-term outlook for Bitcoin, the asset is diving closer to its 200-week multiplier at $21,435.
Bitcoin price nosedived after fears the Federal Reserve will hike interest rates, and the asset remained highly correlated with tech stocks and the S&P 500. Analysts fear BTC could fail to make a comeback above $40,000.
Bitcoin price struggles to make a comeback
Bitcoin price is wavering as a key metric identifying holders’ sentiment towards the leading cryptocurrency reached extreme readings. Based on data from crypto intelligence platform Santiment, within the first two hours of Monday the Bitcoin network witnessed a massive increase in the ratio of transactions in profit vs transactions in loss.
The ratio is 12.5 to 1, revealing a loss of trader’s confidence in Bitcoin’s recovery and its ability to make a comeback to the $40,000 level. This implies that traders and holders continue to remain unsure of Bitcoin’s chances to reclaim a key psychological barrier at $40,000.
Bitcoin profit taking in the beginning of May 2022
Warren Buffett of Berkshire Hathaway was quoted in an annual shareholder meeting about Bitcoin and its utility. Buffett said,
If you told me you owned all the bitcoin in the world and you offered it to me for $25, I wouldn't take it. What would I do with it?
Buffett believes Bitcoin is not a productive asset and it doesn’t produce anything tangible. The billionaire has a bearish outlook on Bitcoin.
@davthewave, a crypto analyst and trader believes the medium-term outlook for Bitcoin price is bearish. Bitcoin needs to complete its correction towards the end of the year, and start a rally.
Medium-term outlook.
— dave the wave (@davthewave) September 21, 2021
It may not be the prettiest picture, but at least it would have the correction complete toward the end of this year... pic.twitter.com/9kTPgOeoSO
Analysts at ecoinometrics have compared Bitcoin price to its 200-week multiplier and noted the possibility of BTC dropping to $21,435.
Bitcoin - 200 weeks multiplier
The distance between Bitcoin’s price and the 200-day Simple Moving Average has consistently decreased over the past two weeks. The 200-SMA is considered key to Bitcoin’s price trend, and a move below would be considered a very bearish sign for the coin.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections
MAGA trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption.
Bitcoin ETFs beat Gold ETFs with 65% gain since launch
Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand
Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF
Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.