After a small crash last week, Bitcoin, the top cryptocurrency, is currently undergoing a major correction in its course. BTC was bearish on the one-day chart, the 12-hour chart, and even on the four-hour chart, red candles seemed to be trending. At the time of writing, Bitcoin was trading around the $ 31.5K mark after falling 0.65% in the past 24 hours. However, all hope was not lost for the king coin.
While the occasional mini-pumps on BTC’s four-hour chart on July 16 didn’t do much for the price, some pretty interesting shots were showcased by experts. On the one hand, recent Santiment data hit an optimistic note about Bitcoin’s sentiment on Twitter, which was down. The more negative the sentiment, the greater the extent of a possible price rally. Thus, a rally is predicted for the top coin that could surprise the Bitcoin community. The post said:
“Twitter’s sentiment towards Bitcoin remains negative in terms of the volume and tone our algorithm picks up. Generally with negativity there is a higher price surge to surprise the crowd. “
On the other hand, the founder and CEO of the crypto exchange CoinCorner Danny Scott tweeted about a bizarre similarity between the Bitcoin charts of today and 2013. He pointed out that both charts showed Bitcoin highs in April, followed by a multi-month high Decline. However, in 2013, Bitcoin rebounded in August and rallied through the end of the year.
2013 vs. 2021 #Bitcoin Bull runs.
Both had a peak in April, then down and settled down for a couple of months…. pic.twitter.com/Lo6nEvg9uF
– Danny Scott (@CoinCornerDanny) July 17, 2021
Additionally, a closer look at the stock-to-flow ratio for Bitcoin showed a steep drop in the metric. Technically, this would be followed by a price spike as in previous cycles. In a recently published tweet addressing skepticism about the stock-to-flow Bitcoin model, PlanB had tweeted that the “next 6 months will be decisive for S2F (again)”. According to some critics, the S2F model has not caught on in the case of Bitcoin.
June closing price $ 35,037 .. as far below the S2F model as in January 2019. The next 6 months will be decisive for S2F (again). pic.twitter.com/W3TM5sOAwY
– PlanB (@ 100 trillion USD) July 1, 2021
The stock-to-flow model values Bitcoin as a scarce digital resource with deeply compelling properties for maintaining value over the long term, provided there is a statistically significant relationship between stock-to-flow and market value. In general, the price of Bitcoin should increase significantly over time due to its continuously reduced stock-to-flow ratio.
While these few metrics suggest a bullish narrative, they should be viewed with caution. As can be seen in the graphs above, Bitcoin’s development activity also collapsed to a low level, indicating a weakened network. Notably, Bitcoin’s Fear and Greed Index recently hit 15, which means extreme fear. Similar values were observed in March 2020 when the coin fell nearly 50% in one day.