After a long gap, Bitcoin (BTC) price is consistently showing signs of strength without a downside curve. However, a Bitcoin price drop could always be around the corner especially in the current bear market scenario. At the current range, the top cryptocurrency is maintaining an impressive weekly gain of around 9%. However, certain on chain indicators signal towards a possible Bitcoin price drop in the short term. On the other side, a section of BTC investors are hoping for the start of a bull run with this rally.
BTC Price Drop Soon?
BTC saw huge liquidity on exchanges at the $21,400 level. This is a potential sign that the market is anticipating a local bottom at that level and a price drop thereafter. Also, big investors might be looking to open short positions to take profits if there is a price decline. According to Crypto Quant data, there was transfer of Bitcoin in huge quantities into exchanges within a short span.
“Two alerts were triggered today about high BTC inflow mean into exchanges. The first was a mean of 21 BTC. The second was 17 BTC.”
Overall, there is high capital flow in terms of BTC in the current scenario. This is evident from the rising open interest in BTC derivatives market. Also, stablecoins were also sent to exchanges in recent times, in a potential sign of investors looking to open short positions. It is also possible that the investors are looking to capitalize on the chance of a price correction.
New Monthly High Next Week?
As of writing, BTC price stands at $20,880, up 1.91% in the last 24 hours, according to price tracking platform CoinMarketCap. On Saturday, BTC reached a monthly high of $20,988, which is around 14% up from the monthly low range of $18,400. It remains to be seen if the top cryptocurrency will breach the $21,000 level before the end of the weekend. This means Bitcoin would have reached a new monthly high after prolonged sideways movement in recent times.