Bitcoin [BTC] manages to see some green on the charts, but here’s the caveat
Although Bitcoin [BTC] may have successfully put out a fire at the moment and may be catching its breath in peace, the real question here is that is the king token far enough from the site of a disaster, or does the path to complete recovery merely circle around the reds even now?
At press time, the token stood at $30,548. Although considerably lower than its price at the beginning of the month, the token was definitely in a much better shape, especially considering the volatility in May.
All’s good in the BTC hood?
Despite the king token taking a moment to itself, it may seem that the rest period of the token is short-lived. As per the data from Glassnode, the daily netflow of the king token stood at -$35.8 million, depicting the movement of the token from exchanges to wallets. However, the weekly netflow showed a different story altogether. The weekly netflow of BTC stood at $319.9 million. Furthermore, the percent of supply active in the last five years also reached an all-time high and stood at 23.17% as of 30 May 2022.
Are other metrics in good shape?
At the time of writing, the MVRV ratio stood at a score of 1.24. Although in a better shape than 27 May’s 1.20, the slight spike in the score still doesn’t change the fact that the token is still lurking in the shadows of the bear market.
Furthermore, the NVT ratio experienced a spike and stood at 53.16 as of 29 May indicating an ongoing inclination towards the bears.
As per additional data from Glassnode, the number of addresses with BTC balance of more than 1k and 100k also witnessed a decline and stood at 2,210 and 95 respectively.
The BTC sentiment…
At the time of writing, the bitcoin fear and greed index stood at a score of 10 after dropping by 4 points. The fear and greed index stood at 14 as of 29 May.
Furthermore, the Twitter handle IT Tech sent out a tweet pointing in the direction of the upcoming volatility related to the BTC token, whereas crypto investor, Lark Davis further mentioned the ongoing sideways trend but remained puzzled about the token’s next steps.
The Relative Strength Index (RSI) was further headed in an upward direction and stood just below the neutral 50 line, indicating a trend reversal from the oversold region. Despite flashing green bars, the Awesome Oscillator (AO) stayed below the 0 line, proving that Bitcoin may rest for a period, but the token may have to do a lot more than just take a few positive strides.