Bitrabo Editorial
Recently, several Bitcoin indicators have shown negative trends, highlighted by a sharp drop in its sell-side risk ratio amid ongoing price fluctuations. This shift has led to speculation in the crypto community regarding the digital asset’s long-term viability.
Impact of Bitcoin’s Falling Sell-Side Risk Ratio
The market’s increasing volatility has been reflected in the recent significant decrease in Bitcoin’s sell-side risk ratio. Kyle Doops, a well-known market analyst and host of the Crypto Banter show, mentioned this concerning trend on X (formerly Twitter) earlier this week.
The Bitcoin Sell-Side Risk Ratio gauges the ratio of realized profits and losses relative to the market size. A low ratio indicates a state of balance, while a high ratio suggests significant gains or losses, signifying increased volatility.
According to Doops, as most coins appear to be close to break-even values, the recent decline signals that profit-taking is approaching its limit, which could lead to further volatility reminiscent of 2019.
Despite the decline in the sell-risk ratio indicating potential future volatility, many crypto analysts remain upbeat about Bitcoin’s price trajectory, with some forecasting that it might reach a new all-time high soon.
Mags, a cryptocurrency expert, has recently predicted that Bitcoin may achieve a new record high. He believes this is likely due to a potential bullish crossover as BTC transitions out of its current consolidation phase, suggesting an upward trend in the months ahead.
He drew comparisons between the current consolidation phase and last year’s extended range for BTC. While there was a temporary price jump after an initial positive MACD crossover, it did not lead to a breakout. In contrast, a significant surge followed the subsequent crossover.
Mags is optimistic that Bitcoin could reach a new peak if this pattern recurs. “The first signal was weak and created a short-term low, but the second one might trigger a genuine breakout and set a new all-time high,” he stated.
BTC’s Price Holds Bearish Sentiment
At this moment, BTC’s performance has turned bearish after previously gaining ground, now trading around $56,000. This dip is largely seen as a continuation of the negative trends observed in Bitcoin during the month of September over the years.
While September has historically been bearish for BTC, it could pave the way for a positive fourth quarter, as suggested by notable market analyst Rekt Capital.
As outlined by the analyst, investors simply need to navigate through September because, based on historical data, Bitcoin’s value may be set to experience positive returns in the following three months.