Analysis: Some BTC on-chain indicators send bearish signals and market traders remain cautious

Following Bitcoin’s historic bull rally in November and December, its price has been consolidating between $92,000 and $99,000, well below its 20-day exponential moving average (EMA) and close to its 50-day EMA. However, BTC’s price has remained above its 200-day EMA, a critical support level, since October 2024, and the relative strength index (RSI) is currently at 42, indicating that the digital asset is neither overbought nor oversold. The Bitcoin Taker Buy-Sell Ratio, an indicator that measures market sentiment, is currently at 0.92. When the indicator falls below 1, it indicates that bears are in control of the market, while when it is above 1, it indicates that bulls are in control of the market. TradingView contributor “The ForexX Mindset” recently warned investors that a market crash could drop Bitcoin’s price to around $81,500. He believes that the rise in USDT market dominance foreshadows a fall in Bitcoin prices, indicating that investors are seeking safe-haven assets and preparing for potential market changes. Technical analyst Aksel Kibar also predicts that Bitcoin prices will pull back to around $80,000. The trader said that the classic head and shoulders chart pattern indicates that Bitcoin may pull back in the coming days and weeks. Despite these on-chain indicators sending bearish signals and market traders' cautious sentiment, the funding rate of BTC perpetual futures contracts remains positive, indicating that long position traders are still in control of the market and are willing to pay short traders to keep their positions. (Cointelegraph)