As the leading crypto Bitcoin (BTC) continues to struggle to break above the $30,000 range, key BTC price metrics point to further bearish bias. The severe crash in the Terra ecosystem last week, along with the crypto market, has affected the Bitcoin price, causing it to drop by at least 20% since then.
What do the price metrics show for bearish Bitcoin?
Bitcoin NVT Signal hit a four-year low of 235,252, according to a chart shared by on-chain analytics platform Glassnode. This is lower than July 2018 levels around the 250 mark. Glassnode explains:
The NVT Signal for Bitcoin’s seven-day moving average has reached its 4-year low of 235,252.
The Network Value to Transaction (NVT) Signal is an important metric for measuring investor sentiment around an active trading scenario. According to crypto analyst Anvesh Reddy, seeing this key metric hits four-year lows could mean the bearish trend is worse than it looks.
The moving average of the daily trading volume is used instead of the raw daily trading volume to calculate the signal. Therefore, the moving average figures improve the ratio to reflect a clear indication of market sentiment. According to CoinMarketCap, the leading crypto was trading at $29,544, up 1.76% in the last 24 hours. Over the past week, the price of the leading crypto has remained largely stable and has fluctuated around $29,000.
‘Death Cross’ in Bitcoin: May drop to $18,000
The ‘death cross’ that occurred in January earlier this year has recently occurred also shows a similar trend. The death cross is an extreme bearish metric that suggests the Bitcoin price has historically always dropped after it happened. As you can follow in the news of Cryptokoin.com , since January, the Bitcoin price has lost approximately 40% of its value. On the subject, crypto analyst Rekt Capital says:
History shows that whenever a death cross occurs, Bitcoin experiences a deeper decline. Now that one has happened, what can we potentially expect?
In addition, the analyst states that the bottom for BTC has not yet been seen and makes the following predictions about how far it can go from its current level:
Bitcoin, after a death cross in the past -% 55 fell -65% and -71%. If history repeats itself with a -55% collapse, BTC could bottom around $18,000.
