Bitcoin: These are the worrying signals as BTC fails to hold on to $40K
Bitcoin tried its hand at $40,000 yesterday but was quickly stopped in its tracks. At press time, BTC underwent a fresh 2% correction as it traded at the $39.1 k mark. But BTC traders and investors are looking at the brighter side, i.e profits.
Despite the stated fall, BTC did witness some recovery as it inclined by 7% from its lows of $37.7k on 26 April to $40.3k on 28 April. This mild-price rise triggered a profit booking spree amongst its investors. In an April 29 tweet, analytical firm, Santiment noted:
“Bitcoin’s ratio of transactions taken in profit vs. loss is increasing after the subtle rebound these past couple days.”
Bitcoin recorded the highest ratio [0.43] of profit-taking in a month. Even Ethereum’s number [0.21] wasn’t that high at press time.
At the same time, Intotheblock’s insights showcased a similar scenario as well. 60% of BTC holders recorded gains whereas around 39% stayed stuck in losses.
In addition to this, BTC’s network activity stats showed a positive report card alongside the aforementioned data. BTC’s on-chain activity remained in the high-level territory, measured by the daily number of Bitcoins transferred as percentage of total bitcoins in existence.
Despite bitcoin price correction, network activity seems strong.#Bitcoin on-chain activity is in the high-level territory, measured by the daily number of bitcoins that are transferred as % of total bitcoins in existence.
— CryptoQuant.com (@cryptoquant_com) April 28, 2022
In addition, the percentage of the BTC supply dormant for a year or more nonetheless made new all-time highs this month, according to data from on-chain analytics firm Glassnode. As well as, the selling pressure seems to have eased out following the bullish sentiment across the king coin.
Bitcoin, also saw an uptick in the number of addresses. As reported before, Santiment data revealed that as Russia’s invasion of Ukraine intensified, Bitcoin addresses rose. In fact, over 1,600 addresses belonging to sharks and whales can now be called millionaires.
Some reality check
People are still more “bullish” vs “bearish”. But, BTC’s price usually went against the crowds. This as per a fellow analyst, it would lead BTC into another correction in the short term. However, perception might change in the long run.
People are still more "bullish" vs "bearish". But #BTC price usually goes against the crowds (it's clear in last Nov, Dec)
— Jamal Mashal (@jamalx31) April 28, 2022