Bitcoin [BTC]: With this new milestone, there are still doubts about another bull cycle

• BTCs The 1-week average market price falls below the 200-week average for the first time.
• BTC has seen increased sell-offs in the past week.

Leading coin Bitcoin [BTC] registered a new milestone as the coin’s 1-week average market price fell deeply below its 200-week average for the first time, says CryptoQuant analyst Binh Dang found.

According to Dang, this means that a new bull cycle for BTC remains unconfirmed as the king coin’s price would need to experience a significant break above this level to signal a new uptrend.

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Dang added that the current market movement presents an opportunity for those interested in coin accumulation for long-term gains. This could be a profitable strategy if BTC’s price eventually breaks through the resistance level and begins a new bull cycle, Dang argued.

Furthermore, Dang said that a sideways movement may be necessary for BTC to achieve sustainable growth. As a result, BTC’s price may have to experience a period of stability and consolidation, similar to what happened in 2015-2016, rather than a rapid upward movement like in 2019. Dang opined:

“I expect a sideways action long enough, like 2015-2016, to move towards sustainable growth rather than a rush like in 2019,”

BTC is seeing an increased selloff in the past week

According to CoinMarketCap, BTC’s price has fallen by almost 5% in the past week. As the king coin failed to regain the $24,000 price mark many had hoped for, coin distribution for profit became the widespread trend among investors.

Data from Coinglass revealed a steady drop in the coin’s open interest over the past seven days. A decrease in an asset’s open interest means that the number of open positions in the market has decreased, indicating a decrease in market participation and trading activity.

It also suggests a decrease in demand for the asset in question, which is often accompanied by a decrease in price.

Since February 21, BTC’s open interest has fallen by 7%.

Source: Coinglass

Furthermore, since February 1, BTC’s On-Balance Volume (OBV) has been on a downward trend to post a negative value as of press time.

When an asset’s OBV drops to a negative value, it means that there has been more selling volume on days when the price fell than buying volume on days when the price rose.

This is often taken as a bearish signal indicating that there is more selling pressure than buying pressure in the market. At press time, BTC’s OBV stood at -1.671 million.

Read Bitcoins [BTC] Price prediction 2023-24

Finally, the coin’s Aroon Up Line (orange) was 21.43% at the time of writing. When a coin’s Aroon Up line is close to zero, the uptrend is weak and the last high was reached a long time ago. It is often followed by a continued decline in the asset’s value.

Source: BTC/USDT on TradingView