Bitcoin (BTC) is potentially flashing bearish, according to crypto analytics firm Santiment
Bitcoin (BTC) is showing a potentially bearish pattern on the charts, according to crypto analytics firm Santiment.
Santiment notes that 1.69 million bitcoin worth more than $33 billion at the time of writing have gone public between September 7th and 13th.
That figure represents the highest weekly increase in FX inflows since October 2021, according to Santiment.
A 2021 study published by Santiment shows that sharp increases in FX inflows tend to result in an average 5% price drop for crypto assets. To calculate this result, the analytics firm tracked the price movements of 1,000 crypto assets with a market cap of at least $1 million.
Regarding the overall crypto market, Santiment noted this week that crypto traders don’t seem keen to buy the drop, indicating fear and uncertainty in the market.
“Following yesterday’s big drop, crypto traders are showing signs of being somewhat deaf to sudden declines on inflation-related fears. Buying interest is now remarkably low compared to the rising prices three days ago, indicating FUD.”
Source: santimentfeed/Twitter
Bitcoin is trading at $19,749 at the time of writing. The top-rated crypto asset by market cap is down 0.73% in the past 24 hours and more than 7% in the past seven days. BTC remains more than 71% below its all-time high of over $69,000 set last November.
Analytics firm Glassnode also notes that Bitcoin’s seven-day moving average transaction volume hit a monthly low of $2.59 billion on Friday. Glassnode also highlights that the seven-day moving average of BTC median transaction volume just touched a monthly low of $244,630.36.
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