{"id":251321,"date":"2022-08-11T04:00:07","date_gmt":"2022-08-10T22:30:07","guid":{"rendered":"https:\/\/ambcrypto.com\/?p=251321"},"modified":"2022-08-10T19:08:31","modified_gmt":"2022-08-10T13:38:31","slug":"why-bitcoin-btc-investors-should-consider-taking-a-chill-pill","status":"publish","type":"post","link":"https:\/\/ambcrypto.com\/why-bitcoin-btc-investors-should-consider-taking-a-chill-pill\/","title":{"rendered":"Why Bitcoin [BTC] investors should consider taking a chill pill"},"content":{"rendered":"

Bitcoin [BTC]<\/span><\/a> proved it was the crypto king in July after making over 17% profit for investors and leading other altcoins to significant gains. <\/span><\/p>\n

However, the antics of the top-ranked crypto in market value may require short-term investors to remain cautious of any long positions.\u00a0<\/span><\/p>\n

BaroVirtual, a CryptoQuant analyst, warned in a recent post <\/span>citing<\/span><\/a> the dangers of hoping for profit-filled buy orders. It may seem that the analyst\u2019s warning has been proven right in a short period. BTC was 3.78% <\/span>down<\/span><\/a> from its previous 24-hour value at press time. <\/span><\/p>\n

The coin had lost over $1000 in the same period after falling from $23,800 on 9 August to trade at $22,972 today (10 August).<\/span><\/p>\n

More downfall probably<\/h3>\n

BaroVirtual noted that long BTC positions might not be a solid option for traders. He added that the stablecoin supply ratio did not favor long green candles as the SSR shock momentum was in warning mode.<\/span><\/p>\n

The analyst’s opinion aligns with an earlier <\/span>analysis<\/span><\/a> by another CryptoQuant analyst who mentioned that selling pressure from shorts would drive the BTC price further down. So would BTC hit another bottom as <\/span>projected<\/span><\/a> by the analyst?<\/p>\n

Checks and balances<\/h3>\n

According to the BTC\/USDT chart, the Awesome Oscillator (AO) seemed to agree with the above projections. This is because the momentum was moving below the histogram. Additionally, it maintained a bearish edge at -213.27, even as the BTC price continued to fall.<\/span><\/p>\n

However, the Chaikin Money Flow (CMF) indicated short-term investors may have started deploying capital into Bitcoin as it remained above zero at 0.10, with possible indications to go further up. <\/span><\/p>\n

Additionally, the Relative Strength Index (RSI) was somewhat neutral at press time.<\/span><\/p>\n

\"\"<\/a>
Source: TradingView<\/figcaption><\/figure>\n

With these current situations, BaroVirtual may well be right to ask that short-term profit expectations should be at a minimal level. Apart from the indicators, what are other metrics saying?<\/span><\/p>\n

According to Glassnode data, stablecoin deposits have been relatively low lately. The on-chain analytics platform reported that both Circle [USDC] and Tether [USDT] <\/span>recorded<\/span><\/a> monthly lows in deposits.<\/span><\/p>\n

\n

\ud83d\udcc9 $USDT<\/a> Transaction Volume (7d MA) just reached a 21-month low of 97,811,848.712 USDT<\/p>\n

Previous 21-month low of 98,013,370.104 USDT was observed on 09 August 2022<\/p>\n

View metric:https:\/\/t.co\/7oXBoR4C4j<\/a> pic.twitter.com\/NZ0Dc49Ijw<\/a><\/p>\n

— glassnode alerts (@glassnodealerts) August 10, 2022<\/a><\/p><\/blockquote>\n