Bitcoin [BTC] Sheds Nearly 5% Since Friday, Dragging the Fear and Greed Index Lower

This might not spark an immediate recovery, but a recovery could be brewing. The stablecoin ratio channel signaled a buying opportunity for BTC and altcoins.

Bitcoin (BTC) price slid further on Monday, extending losses from the previous session as a technical indicator signaled that the selling pressure might be coming to an end.

Bitcoin price today: BTC trades at $47.1k on Binance, down 1.24% in the past 24 hours and 4.9% since Friday.

The cryptocurrency, the world’s largest and most well-known, slipped below the $47,000 level early on Monday. It had slid more than 4% on Friday after a report from the U.S. Bureau of Labor Statistics showed that the personal consumption expenditures (PCE) price index rose 3.8% in December from a year earlier.

The Fear and Greed Index has also slipped further into the ‘fear’ territory, standing at 28 at last check.

A technical indicator, meanwhile, signaled that the selling pressure on Bitcoin might be winding down.

Crypto analyst Axel Adler Jr observed in a post on X that the 90-day moving average of the Bitcoin token transfer volume change (%) was falling.

It was currently close to the lows from 2023, which corresponded to a period of BTC accumulation. The indicator shows the average change in transaction volume over the last 90 days compared to the previous day. Its recent retreat meant that major sell-offs were over, and Bitcoin might begin to trend higher on the price chart.

At the same time, the stablecoin ratio channel, which measures the ratio of stablecoin supply to BTC supply, signaled a buying opportunity for BTC and altcoins.

The increase in stablecoin supply indicates increased liquidity and tends to occur during bearish market phases.

As the stablecoin ratio channel approached the lower band of the channel, it presented a favorable entry point for BTC and altcoins.

However, Adler cautioned that a single indicator is not enough to determine a trend reversal.

“Don't get ahead of yourself. We need to see more indicators and a clear pattern in the price action before we can say with certainty that the downtrend is over and an uptrend is beginning,” he warned.

output: Bitcoin price slipped further on Monday, extending losses from the previous session as a technical indicator signaled that the selling pressure might be coming to an end.

The world’s largest cryptocurrency slid below the $47,000 level early on Monday. It had slid more than 4% on Friday after a report from the U.S. Bureau of Labor Statistics showed that the personal consumption expenditures (PCE) price index rose 3.8% in December from a year earlier.

The Fear and Greed Index has also slipped further into the ‘fear’ territory, now standing at 28.

But one technical indicator, tracked by crypto analyst Axel Adler Jr, indicated that the selling pressure on Bitcoin might be winding down.

The 90-day moving average of the Bitcoin token transfer volume change (%) was falling and is now close to the lows from 2023, which corresponded to a period of BTC accumulation. The indicator, which shows the average change in transaction volume over the last 90 days compared to the previous day, is still decreasing.

Its recent retreat meant that major sell-offs were over, and Bitcoin might begin to trend higher on the price chart.

At the same time, the stablecoin ratio channel, which measures the ratio of stablecoin supply to BTC supply, signaled a buying opportunity for BTC and altcoins. The increase in stablecoin supply indicates increased liquidity and tends to occur during bearish market phases.

As the stablecoin ratio channel approached the lower band of the channel, it presented a favorable entry point for BTC and altcoins.

However, Adler cautioned that a single indicator is not enough to determine a trend reversal.

“Don't get ahead of yourself. We need to see more indicators and a clear pattern in the price action before we can say with certainty that the downtrend is over and an uptrend is beginning,” he warned.