Bitcoin [BTC] It can be considered as one of the most affected coins since Ethereum [ETH] merged last week. The coin dropped to its lowest level in three months since last week when it fell below $18,500, however, at the time of writing, BTC has seen a strong rally with the price increasing by 4.7% to $19,400. Despite rallying back above $19,400, the sentiment around BTC looks negative.
according to feelingsOver the past week, social trends have taken a major turn. Cryptocurrencies like ETH and Cardano [ADA] They have seen a huge increase related to their respective promotions.
One of the victims in this story, however, was Bitcoin, which saw a sharp 17.5% drop in social volume. Historically, the higher social trend has always valued bitcoin prices at least in the short term.
📉 # encrypt It’s clear that the markets took a huge hit over the past week, but it’s interesting to see where social concerns have shifted. ETH dollarAnd the XRP DollarsAnd the ADA dollarsAnd the matic dollarAnd the gray dollars It increased in discussions, while most other assets were discussed much less. https://t.co/B461oasvSr pic.twitter.com/c6FVIS90gG
– Santimentfeed September 19, 2022
One of the main bearish comments for Bitcoin is that “buy dip” calls are disappearing in the market. as such feelings You mentioned that traders used to “bragging” about buying dips but the situation has changed since then. The update also claimed that there was “polarization” in the market.
Without warning, by surprise, suddenly? Not right!
As previously reported, a market sell-off was expected after heavy currency inflows to the exchanges. Between September 7 and September 14, 1.69 million BTC worth $33.5 billion were sent to exchanges. According to Santiment, this was the highest volume of BTC transferred since October 2021.
However, there is another factor that is starting to open holes in Bitcoin. According to recent Glassnode ModernizationThe average transaction volume (7d MA) reached a two-year low of $469.39. This showed a downtrend around Bitcoin’s preference in the crypto market. For every significant rise in fortunes, Bitcoin is now urgently needed to increase volume.
Additionally, crypto enthusiast and co-founder of Reflexology Research, Will Clemente, offered belated optimism. Modernization to the Bitcoin community. He stated that despite the massive 60% drop in price since last year, 65% of the bitcoin supply has not moved over the same period.
This reinforced sentiment towards Bitcoin to limit the bearish effects. This means that long-term BTC holders will still believe in the token because they have not yet exited their positions.
Perhaps the biggest puzzle in the crypto market at the moment is the future of Bitcoin.