With the king coin testing new support levels every day, it’s fair to say that the bear has flatly refused to wake up from its ongoing slumber and wants to remain in hibernation.
The last month has been extremely stressful for Bitcoin (BTC) as the token fell from $46,598 on April 4 to $36,432 at press time. Furthermore, the Awesome Oscillator (AO) underpins the bear run since early April.
Source: TradingView
Red is the color of April
On May 5th, BTC experienced a steep drop of around -7.90%. The token opened at $39,669, went to a low of $36,129 and finally closed at $36,441 for the day. According to a tweet from Wu Blockchain, BTC recorded about $120 million in liquidity within an hour of the price drop.
In addition, the number of active addresses increased from 868,000 on May 4 to approximately 1.17 million on May 5, according to Santiment data.
Source: Glassnode
Exchange net flow volume continued to increase from -2,350 on May 4 to 1,492 on May 5, suggesting that BTC holders may be anxious to limit their losses should the coin’s price plummet to new ones to test support levels. The Bitcoin Fear & Greed Index was also showing the sentiment of “extreme fear,” standing at 22 points at press time.
The BTC token bear run further impacted the outflow of BTC exchange-traded products (ETPs). According to the latest statistics released by Arcane Research, a total of 14,327 BTC outflows took place in the month of April, which can be considered the largest monthly outflow in BTC ETP history.
Canada and the US saw net outflows of about 7,100 BTC and 3,312 BTC, respectively. On the other hand, Europe recorded 3,974 BTC outflows in April 2022.
Source: Arcane Research
Despite the ongoing bear run, BTC HODLers and investors still appeared to have a positive outlook on the price action. Lark Davis, a crypto analyst, posted a series of tweets suggesting that he is still bullish on the token. Additionally, another analyst, Willy Woo, took to Twitter to defend the king coin, stating that BTC has always outperformed all other tokens. Microstrategy manager Micheal Saylor also maintained his bullish stance on BTC.
Is the BTC bear running a marathon?
It can be noted that the bear is extremely comfortable staying below the $40,000 level, especially given its price action over the past few weeks. With the token in the red at press time, it looks like the bear has mistaken a sprint for a marathon and has no intention of stopping running any time soon.
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