Bitcoin Analysis: BTC Constant Struggles at $52k Could Indicate an Impending Downtrend

Bitcoin price since hitting $52k has been less predictable. This is due to many calls that the surge is false and not sustainable. However, over the last five days, the apex coin traded around the said mark.

At this time, the market is split between two factions; those who are optimistic about next price action and those who are not. The price stability is a clear indication of this playing out. At the time of writing, the 1-day chart is displaying a doji, depicting very little changes to its value. While the next price action is less predictable, here are some key signs unfolding.

Drop in Funding Rate

When the uptrend started, several exchanges registered significant increases in funding rates. With the increase in funds, the asset was sure to see more price increases. Price’s actions after February 12 proved this true. As a result, BTC climbed to its highest in almost two years.

At the time of writing this very important catalyst is receiving less attention. The chart shows that for the past five days, the apex coin funding has remained almost the same. This also largely contributes to the almost stagnant performance in value. A closer look at the chart above further illustrates that this was the reason for the small downtrend on Saturday.

Still on the rate of funding, on-chain data shows that long-term hodlers and whales are moving more bitcoin to exchanges. Traditionally, this trend preceded an impending massive price decline. According to whalemap.io, the increase may send the asset below $50k. However, it won’t be as severe as the downtrend that took place starting January 11. That decline saw the largest cryptocurrency drop by more than 10%.

A clearer evidence of the above claim is that exchanges are not seeing the same level of inflow. For example, starting on the fourth day of the previous month, the large wallet a lot of their assets. At the time of writing, there is no such accumulation or movement from these large accounts.

 

 

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