Bitcoin [BTC]: Is this really the right dip to make money from

Bitcoin, again, went on a steep downtrend on August 18 after seeing a steady recovery after the massive decline in June. In fact, for a brief time the royal coin also managed to cross the $24,000 mark, giving investors hope for a further rise before moving south.

At the time of writing, BTC was trading at $21,119.65 with a market capitalization of $403,966,011,914. But before panic selling, investors can look at some metrics. Especially since some data sets may suggest that this is a good time to accumulate BTC.

What does the data tell us?

A look at Hash Ribbon’s data suggested that there could be a big buying opportunity for buyers when the 30-day MA crossed the 60-day MA. When the 30d MA crosses above the 60d MA, the Hash Ribbon signals that the worst of the miners’ surrender is over. This is a positive market indicator, one that encourages investors to buy more.

The crossover in question began last week after the Green Line gained enough momentum to pass the Blue Line.

Source: Glassnode

This is the current scenario

Ghoddusifar, a CryptoQuant analyst, recently extended on the possibility of BTC falling by another 30%. In light of what Hash Ribbon tells us, it’s worth a look some calculations to assess whether the prediction might be true.

Consider this – Bitcoin weakened by 15% in the last seven days. On the contrary, a massive increase in volume was noted, indicating liquidations. The total transfer volume to Bitcoin exchanges also fell along with the price, further underscoring the operation of a bearish market.

Source: Glassnode

Total supply in losses also moved northward as it increased from 6,825,471 on August 15th to nearly 8,720,069, which marked this month’s high on August 19th.

Source: Glassnode

Finally, BTC’s 4-hour chart also showed a similar picture as the EMA (Exponential Moving Average) band pointed to a bearish upper hand in the market. The 55-day EMA was well above the 20-day EMA – suggesting a further decline in BTC’s price over the coming days.

All these data sets complement Ghoddusifar’s assessment of further price falls. Therefore, investors should think twice before making a sell call as the calculations seem to suggest a good buy market.

Source: BTC/USDT, TradingView

However, it is worth pointing out that wAlthough most data points indicated a bear market, a closer look at some indicators suggested the opposite. A bullish crossover occurred on the MACD and it could lead to a price rally in the next few days.

Moreover, the RSI also highlighted a bullish move as it bounced back from the oversold zone and moved towards the neutral zone.