After a sharp pullback in the price of Bitcoin, there are speculations that the cryptocurrency the market has shifted to the bearish phasewhich marks the end of the bull market. Despite this significant decline, key metrics are showing signs that the market pain may continue, reinforcing the current downward pressure.
Bitcoin Metric Warns Pullback Is Not Over Yet
BitcoinThe ongoing downside movement does not appear to have peaked yet. The closely watched Bitcoin market index shows that the current dip is not over yet, and the correction may continue for a short time.
This data from the Bitcoin Z-Score metric suggests that selling pressure and weak demand conditions they are more likely to continue in the coming days, weeks, or even months. Next is metric analysis, On-Chain Mind revealed that BTC hit a -3σ deviation from the recent crash.
The -3σ deviation to the downside, which sits at the $60,000 price mark, is the most extreme statistical expansion in BTC history. On-Chain Mind pointed out that a further sharp decline below this level would now be unprecedented.
Given the data from the metric, the crypto expert predicts that the negative chop will continue for a while longer. It is interesting that the last bottoms were created by a single, variable compression and now a vertical crash. For now, the likelihood of continued temporary weakness before a strong recovery emerges remains high.
Darkfost, market expert and writer at CryptoQuant, has light up in the current BTC environment the Bull Score Signals metric is used. This metric provides an overview of the market’s on-chain health and highlights several key factors affecting Bitcoin price behavior.
It also includes various important information about the demand, liquidity, and price of Bitcoin. Currently, most of these indicators are still showing red, indicating that the environment has not improved. As long as this is the case, Bitcoin’s difficulty to reach a new high in a short period of time becomes very difficult.
Whales Under Pressure Due to BTC Decline
With a temporary break below $60,000, a wave of panic has ignited across the market, putting Bitcoin whales under pressure. Despite the popular opinion, these big owners are not always the type of smart money that is patient and rational because they react to market shocks by taking advantage or under pressure.
Checking their entry into Binance platformDarkhost has highlighted increase in monthly fixed time. Monthly income increased from around 1,000 BTC to around 3,000 BTC, with a notable spike of around 12,000 BTC on February 6 alone. When there is a lot of price pressure, this type of action indicates that the transmission in the exchange is very strong.
As of February 1, more than 50,000 BTC inflows were seen in this group, raising the sensitivity rapid market change to investors as they adjust their positions. These investors can suddenly influence price fluctuations, which can be good for measuring the forces that shape the market. In an environment where the general market capitalization is tightening, a rise in income is usually a sign of increased selling pressure.
Featured image from Pngtree, chart from Tradingview.com
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