Analysis: Some on-chain indicators for BTC are signaling a bearish trend and market traders remain cautious

After the historic bull market rebound of Bitcoin in November and December, its price has been consolidating 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 remained above its 200-day EMA, a key support level. The relative strength index (RSI) is currently at 42, indicating that this digital asset is neither overbought nor oversold. The Bitcoin Taker buy-sell ratio which measures market sentiment is currently at 0.92. When this indicator falls below 1 it indicates that bears control the market while when it's above one bulls are in control.

TradingView contributor "The ForexX Mindset" recently warned investors that a market crash could bring Bitcoin's price down to around $81,500. He believes that the rise in dominance of USDT markets foreshadows a drop in bitcoin prices as investors seek safe-haven assets and prepare for potential changes in trends. Technical analyst Aksel Kibar also predicts that Bitcoin will pull back to around $80,000. This trader suggests that classic head-and-shoulders chart patterns indicate possible retracements for Bitcoin over the next few days or weeks.
Despite these bearish signals from on-chain indicators and cautious sentiment among traders,the funding rate for BTC perpetual futures contracts remains positive suggesting long position traders still dominate the market willing to pay fees to short sellers to maintain their positions.(Cointelegraph)