Bitcoin has shown a downward trend on the weekly chart, losing about 4% in value over the last week. However, investors maintain their confidence in the cryptocurrency despite the decline and are not inclined to sell. Crypto analyst Willy Woo shared a metric indicating that investors expecting a rise in Bitcoin are avoiding selling.
It has been stated that there is a tight connection between the supply of Bitcoin on exchanges and outside, therefore, there is no pressure to buy or sell. A slowdown in Bitcoin’s velocity was observed, meaning that fewer tokens were being transferred over a given time period. An increase was seen in Bitcoin’s dual CDD, which could be interpreted as recent activities of long-term holders.
Bitcoin’s daily transaction volume has been low over the past 24 hours. Looking at liquidity levels, it appears that there has been no significant selling below Bitcoin’s current value. This situation does not rule out the possibility of the trend reversing. If Bitcoin enters a rally, it may encounter strong resistance around $43,600.
Another positive indicator for Bitcoin was the fear and greed index. According to Glassnode’s chart, the index was down and was at a value of 67 at the time of writing. This typically indicates a “fear” phase where the trend could reverse. However, the MACD showed a clear downward trend on Bitcoin’s daily chart. The Money Flow Index (MFI) also recorded a decline, which could lead to further decreases in the price of the cryptocurrency.