Bitcoin’s fragility at the moment has affected this BTC HODLer motto the most
Bitcoin [BTC] can be considered one of the worst hit tokens since Ethereum [ETH] Merge last week. The token even dived to its three-month low since last week when it crashed below $18,500. But at the time of writing, BTC witnessed a strong rally as its price rose 4.7% to stand at $19,400. To despite climbing back above $19,400, sentiment around BTC looks negative.
As per Sentiment, social trends in the past week have taken a major turn. Cryptocurrencies such as ETH and Cardano [ADA] have seen a massive increase associated with their respective upgrades.
However, one of the deaths in this narrative has been Bitcoin, as it saw a sharp 17.5% decline in social volume. Historically, a higher social trend has always appreciated Bitcoin’s prices in the short term at least.
📉 #Crypto the markets have obviously taken a big hit this past week, but it’s interesting to see where social interests have shifted. $ETH, $XRP, $ADA, $MATICand $SHIB has increased in discussions, while most other assets are discussed far less. pic.twitter.com/c6FVIS90gG
— Santiment (@santimentfeed) 19 September 2022
One of the main bearish notes on Bitcoin is the fading of “buy the dip” calls in the market. As Sentiment reported, traders previously “boasted” about buying the dip, but the situation has since changed. The update also claimed that there is “polarization” in the market.
Source: Sentiment
Out of the blue? Not really!
As reported earlier, the sale has been expected in the market following heavy coin inflows to exchanges. Between September 7 and September 14, 1.69 million BTC worth $33.5 billion was sent to exchanges. According to Santiment, this was the highest BTC volume moved since October 2021.
However, another factor is starting to open cracks in Bitcoin. Per a recent Glassnode Update, Median Transaction Volume (7d MA) just hit a two-year low of $469.39. This showed a decreasing trend around Bitcoin favoritism in the crypto market. For any major increase in wealth, there is now a desperate need for Bitcoin to increase volume.
Source: Glassnode
Furthermore, crypto enthusiast and co-founder of Reflexivity Research, Will Clemente, offered a belated optimist. Update for the Bitcoin community. He stated that despite a huge 60% drop in prices since last year, 65% of Bitcoin’s supply did not move during the same period.
This has further stimulated sentiment regarding Bitcoin to dampen the bearish influences. This means that long-term BTC holders still believe in the token as they have not yet exited their positions.
Source: Will Clemente/ Twitter
Perhaps the future of Bitcoin is the biggest mystery in the crypto market at the moment.
