Red or green? Identifying what color Bitcoin [BTC] is today
The king coin still seems to be in hiding and recovering from what seemed like an exhausting bear chase. Despite Bitcoin’s best efforts of late, BTC slipped back below $30K once again. At press time, it was trading at $29,339 on the charts.
However, does the crypto plan on pleasing the bears for a bit longer, or do the bulls aim to take back their position? Let’s see what the metrics have to say…
Hibernate a bit longer?
2022 hasn’t seen the world’s largest cryptocurrency at its best on the charts. Additionally, data from Glassnode also revealed that the number of whales holding BTC hit a 21-month low of 1,745. Furthermore, the amount of supply last active in the last five to seven years also touched a three-month high of 699,937.
On the contrary, the number of addresses holding more than one BTC hit an ATH of 844,956, despite the ongoing bear market. At press time, the Exchange Netflow Volume also stood at -1,369, indicating an inclination of investors towards holding the crypto.
Does this mean that small-time investors may push the market in the opposite direction? Is BTC sending out mixed signals about its performance?
It may be too soon to say since additional metrics have another story to tell.
The bulls weaken, as the bears strengthen…
At press time, the Bitcoin Fear and Greed Index projected a sentiment of “extreme fear” as it stood at 14. Also, the NVT and MVRV ratios stood at 43.89 and 1.23, respectively, thus strengthening the bearish sentiment.
Finally, the Relative Strength Index (RSI) held its level at 36.55, moving sideways. The Awesome Oscillator (AO), while it flashed green bars, stayed put below the zero line. This hinted at a trend reversal, but combined with bear pressure.
Anticipating a bull run too soon?
As expected, many Bitcoin advocates still vouch for a bullish future. In a tweet, for instance, Jack Mallers, claimed that Bitcoin still is the future of money.
Are bears in for the long haul? Seems so…
Despite what Bitcoin enthusiasts feel and no matter what some metrics suggest, most metrics, at press time, indicated that bears will retain power in the short-term. That doesn’t mean Bitcoin is red or green, however. Perhaps, it’s just yellow.