Bitcoin (BTC) Flashes Potentially Bearish Metrics, According to Crypto Analytics Firm Santiment
Bitcoin (BTC) is showing a potential bearish pattern on the charts, according to crypto analysis firm Santiment.
Sentiment notes that 1.69 million Bitcoin, worth more than $33 billion at the time of writing, moved to exchanges between September 7 and 13.
This figure represents the highest weekly increase in exchange inflows since October 2021, according to Santiment.
A 2021 study published by Santiment indicates that large increases in exchange inflows tend to lead to an average price drop of 5% for cryptoassets. To calculate this result, the research firm tracked the price movements of 1,000 cryptoassets with a market capitalization of at least $1 million.
In terms of the overall crypto market, Santiment noted this week that crypto traders seem disinterested in buying the dip, indicating fear and uncertainty in the market.
“After yesterday’s big drop, crypto traders are showing signs of being a little numb to sudden drops from inflation-related scares. The amount of interest to buy is especially thin now compared to when prices rose three days ago, suggesting FUD.”
Bitcoin is trading at $19,749 at the time of writing. The top-ranked crypto asset by market cap is down 0.73% in the last 24 hours and more than 7% in the last seven days. BTC is still more than 71% down from its all-time high of over $69,000, which it reached last November.
Analysis firm Glassnode as well notes that the seven-day moving average of Bitcoin’s transaction volume hit a one-month low of $2.59 billion on Friday. Glassnode also highlights that the seven-day moving average of BTC’s average transaction volume only reached a one-month low of $244,630.36.
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