Bitcoin Bear Dominance May Increase: Analyst's $40,000 Prediction Frightens!

An analyst at the on-chain analysis platform CryptoQuant reported that the Bitcoin (BTC) price could experience serious declines due to the influence of bears.

The CryptoQuant analyst included the bear dominance over the Bitcoin price in his post dated August 16. The analyst, who acted on the NUPL index, stated that historically, the 0.4 level has served as an important support and resistance.

He emphasized that if this index moves downward, the bears will take control and could drag Bitcoin to $40,000:

The NUPL metric is currently positioned near a critical level. Historically, the 0.4 level has served as an important support and resistance point. Data shows that a drop below this level usually signals the beginning of a significant downtrend. If the index continues its downward movement, the bullies can be expected to completely take control of the market. In such a scenario, the price could fall to around $40,000.

However, it is important to note that the current decline has not yet reached a level of intensity that would definitely signal the end of the upward trend.

According to CoinGecko data, Bitcoin, which has increased by 1% in the last 24 hours, is trading at $58,342 at the time of writing.

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