Bitcoin price may continue to decline for these 3 reasons

Unable to break the $ 60k resistance, Bitcoin (BTC) tested lower levels again. Some indicators point out that the decline has not yet come to an end.

BTC / USD, which approached $ 59,000 on Monday, bounced from $ 55,000 towards the end of the day. The biggest cryptocurrency has a lot to do to get out of this range.

BTC is transferred to exchanges again

One metric that could be a problem for the bulls in the near future could be the total BTC reserves in the exchanges.

Although the amount of BTC transferred to the stock exchanges has been in a generally downward trend since last year, instant increases indicate that investors intend to sell.

However, this is not the case for every stock market. According to the tracking source Bybt data, 16,222 BTC was transferred to Binance in the past seven days, while Coinbase Pro’s Bitcoin reserve decreased by 11,947 BTC in the same period.

Still, Binance isn’t alone in this. BTC reserves of Okex, Huobi, Bitfinex and Kraken have also increased in the last 24 hours.

Ambition is rising

The Crypto Fear & Ambition Index, which measures investor sentiment using various factors, reveals that the tendency to sell is increasing even though the price is not rising in the current situation.

About: What is the Crypto Fear & Ambition Index?

The index rose to 68/100 points, the “ambition” zone as of Tuesday.

Crypto Fear & Ambition Index. Source: Alternative.me

The index is still far from above 90 points, as it was in the past months. If the index goes above 90 points, it can be said that it almost guarantees that there will be sales. Price fluctuation ensures that the index does not stay in the same zone for a long time. For example, the score measured on April 27 was only 27.

Dogecoin also suppresses Bitcoin

Finally, one of the factors that could be a problem for Bitcoin this week could be the altcoin market.

First, Ether (ETH) overshadowed Bitcoin, breaking the record for $ 3,000 on Monday.

Today, Dogecoin (DOGE) has swallowed dust on other cryptocurrencies with a 25 percent increase.

DOGE / USD rose 72 percent over the week, while Bitcoin rose only 3 percent over the same period.

Line chart for BTC / USD and DOGE / USD pairs. Source: Tradingview

Analysts think altcoins will rise before Bitcoin takes over the scene again and increases market dominance.

Bitcoin’s market dominance, currently 46.3 percent, continues to decline.

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