BTC needs to convert this ‘semi-bullish’ area into bullish zone for a decent rally
On a nice rebound day for cryptocurrencies, trading volume picked up significantly after a particularly dormant weekend. As per CoinMarketCap, the global crypto market surged by almost 5% in 24 hours. Bitcoin (BTC), the largest crypto-led charge, followed by altcoins.
BTC says ‘B.R.B’
Bitcoin just recovered from a loss or rather a long consolidated phase. BTC investors for the past 30 days are away from the trouble zone (historically, around a 15% loss). Santiment, an on-chain analysis platform, in an April 19 tweet added,
? #Bitcoin's 30-day MVRV indicates that prices are still in a semi-#bullish area. Average traders who have invested in $BTC are currently down -10.4%. This metric fluctuates at 0%, so there is less risk in buying while traders are well in the red here. https://t.co/MpDUaOCT8q pic.twitter.com/j4eFo7Vcon
— Santiment (@santimentfeed) April 18, 2022
Even though the above-mentioned metric in the tweet sparked a ‘semi-bullish’ sentiment, this marked an attempt toward recovery as BTC comfortably moved within an uptrend channel.
In addition, network activity remained constant, regardless of BTC’s volatile price. Consider the Daily Active Addresses here for the same.
This hints at the fact that investors’ interest was not declining. It also meant that irrespective of the price fluctuations, some investors continue to have strong faith in the Bitcoin ecosystem.
On the other hand, exchanges saw a net BTC outflow during the past days (mainly 13-14 April) and no relevant inflows after that. It meant that, at the moment, there is no imminent selling pressure in sight.
What about the mighty holders?
Well, different categories reacted differently following this crazy week. Notably, addresses holding 10-10,000 BTC were seen declining on the macro-frame while addresses with 0-10 BTC saw a spike.
One could observe that the super-whales (LFG, MicroStrategy, and others) accumulated during the past few days. While regular-whales have been the net sellers of the period. Nonetheless, retailers have been buyers all along for quite some time now.
All said and done, the next question that arises is- Can BTC cross the current resistance at $45k and record a decent high? Well, only the time can answer.