Is Bitcoin [BTC] gearing up for a bigger leap now that it is back to $29k?
- Bitcoin traded 3% lower than the previous day and stepped down to $29,278 at press time.
- However, the number of addresses holding 0.1+ BTC reached an all time high.
Ever since Bitcoin [BTC] crossed the $30k mark, traders and enthusiasts of the king coin have rejoiced their position. The beginning of Q2 also saw a revived interest in BTC from various beginners in the crypto community.
However, at press time, BTC exchanged hands below the $30k mark at $29,278 after dropping by almost 3% in the last 24 hours. So what disturbed BTC’s path of achieving new highs in the $30k zone?
Read Bitcoin’s [BTC] Price Prediction 2023-2024
Was all of it temporary?
As per data from CryptoQuant analysis by CryptoOnchain, a rise in the sale of BTC led to a price correction over the last 24 hours. As shown in the chart below, BTC long-term holders (18 months-2 years) selling their BTC led to a drop in the price of the king coin.
However, the analyst also pointed out a rise in the BTC outflow exchange balance. This meant that a rising number of BTC investors were moving their coins to wallets. This could thus, offer BTC some much-needed support to jump back into its race to $30k.
As per another CryptoQuant analysis, BTC’s ongoing trajectory could be similar to the 2018 bear market. Before the bull run of 2019, BTC’s price remained significantly below the realized price in 2018. Before BTC could embark on its bullish journey of 2023, the final capitulation phase saw BTC trading much lower than its realized price.
Year of the bulls then?
Data from intelligence platform Santiment showed that the weighted sentiment towards BTC witnessed a rise as of 18 April. This indicated that traders in the market had a positive outlook towards BTC. However, the social dominance and Market Value to Realized Value (MVRV) witnessed a drop at the time of writing.
Although the MVRV ratio did witness a noteworthy rise since the beginning of March, a drop did indicate a subtle bearishness surrounding the cryptocurrency.
At press time, BTC’s Relative Strength Index (RSI) stood at 57 whereas the Stochastic RSI stood at 73.8. With the RSI and Stochashtic RSI in neutral zones, the price of BTC could up or down depending on a higher sell or buy pressure from the market. The neutral positions also indicated no significant bullish or bearish bias.
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Despite the neutral press time market sentiment, BTC did witness growth in a few areas. For instance, as per data from on-chain intelligence platform Glassnode, the number of addresses holding 0.1+ BTC reached an ATH on 19 April.
— glassnode alerts (@glassnodealerts) April 19, 2023