Analysis: Some on-chain indicators for BTC are showing bearish signals and market traders remain cautious

Odaily Star Daily News: Following the historic Bull Market Rebound of BTC in November and December, its price has been consolidated between $92,000 and $99,000, far below its 20-day Exponential Moving Average (EMA) and close to its 50-day EMA. However, since October 2024, the price of BTC has been staying above its 200-day EMA, which is a key support level. The relative strength index (RSI) is currently at 42, indicating that this digital asset is neither overbought nor oversold. The BTC Taker buy/sell ratio, which measures market sentiment, is currently 0.92. When this ratio falls below 1, it indicates bearish control of the market, while a ratio above 1 indicates bullish control of the market. TradingView contributor 'The ForexX Mindset' recently warned investors that a market crash could cause the price of BTC to drop to around $81,500. He believes that the rise in the dominance of the USDT market indicates a decline in BTC price, suggesting that investors are seeking safe-haven assets and preparing for potential market changes. Technical analyst Aksel Kibar also predicted that the BTC price will rebound to around $80,000. The trader said that the classic head and shoulders pattern indicates that BTC may rebound in the coming days and weeks.

Despite the bearish signals from these on-chain indicators and cautious market sentiment from traders, the funding rate of BTC perpetual futures contracts remains positive, indicating that long position traders still control the market and are willing to pay fees to short traders to maintain their positions. (Cointelegraph)