Bitcoin [BTC] Traders before you become exit liquidity read this

Holder of the largest cryptocurrency Bitcoin [BTC]could have reason to cheer in the coming days, blockchain analytics platform Santiment recently found.

According to them, the trading session just concluded over the past weekend was marked by a surge in interest in BTC across multiple social platforms.

Santiment further noted that among the top 100 cryptocurrency assets, BTC was in over 26% of discussions for the first time since mid-July.

It added that this spike in the king coin’s weighted social sentiment over the past weekend is an indication that an extreme FUD level is lingering in the BTC market. According to the analytics platform, this usually leads to an increase in the price of an asset.

Source: Santiment

Not so fast

While the correlation between an increase in a cryptocurrency asset’s social activity and a corresponding increase in its price cannot be underestimated, the movement of BTC on the price charts suggests that the recent rally in the asset’s social activity should not be taken as conclusive evidence of one should be forthcoming price increase.

First, according to data from CoinMarketCap, BTC changed hands at $18,763.01 after falling 1.40% in the past 24 hours. However, trading volume increased by 14.18% over the same period, resulting in a drop in Down Volume.

Down Volume is when the price of an asset falls and its trading volume increases over the same period. This usually indicates a bearish trade. Hence, BTC sellers have been on the rise for the past 24 hours.

BTC on a daily chart

Looking at the coin’s movement on the daily chart confirmed this position. At press time, the asset’s Money Flow Index (MFI) was approaching the oversold position at 22.18. In fact, BTC’s MFI has been steadily declining since it broke the 50-neutral line on Sept. 15.

The Relative Strength Index (RSI), also in free fall since September 13, is at 39.90 at the time of this writing. The steady decline in these metrics only points to one thing – easing buying pressure.

Additionally, the Moving Average Convergence Divergence (MACD) position at press time lent more credibility to the view that sellers were in control of the BTC market.

Represented by red histogram bars (albeit short), there was a downward crossing point between the MACD line and the trend line on September 18, signaling the start of a new bear cycle.

Finally, BTC’s Directional Movement Index (DMI) showed sellers controlling the BTC market on a daily chart.

At press time, seller (red) strength at 24.36 is solid above buyer (green) strength at 10.74. This has been the case since September 14th.

Source: TradingView

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