Bitcoin [BTC] investors looking for relief may get some after reading this
![Bitcoin [BTC] investors looking for relief may get some after reading this](https://www.cryptoproductivity.org/wp-content/uploads/2022/09/kanchanara-5z36YztTtM-unsplash-1000x600.jpg "Bitcoin [BTC] investors looking for relief may get some after reading this")
Bitcoin [BTC]Performance has been weak of late as the royal coin failed to register gains in recent weeks. BTC’s seven-day chart was painted red as its value dropped by more than 7%.
Recently, BTC’s price hit a three-month low, which was followed by an increase in BTC’s hourly negative sentiment spike. This stood as an indication of a bear market. The good news, however, is that several indicators and calculations on the chain suggest the possibility of a trend reversal soon.
What does BTC do?
BaroVirtual, an analyst and writer at CryptoQuant, published an interesting analysis which gave perspective to the higher selling pressure in the market. In his post, he pointed to a scenario where investors who have held their assets since six to 12 months sell their holdings. This is the reason behind the increase in sales pressure.
Source: TradingView
BaroVirtual said,
“When the Exchange Inflow-Spent Output Age Bands (SOAB) metric among investor age groups 6m-12m signals an INFLOW to crypto exchanges, it usually signals that investors in this age group are pessimistic and tend to sell their coins soon, and this leads inevitably to pressure on the BTC price.”
Better days ahead
Fortunately, there have been several positive developments in recent days that look promising. For example, Santiment’s data revealed that BTC’s social dominance increased, which is mostly a positive indicator. Moreover, BTC’s market value realized (MVRV) ratio was also down, suggesting a possible market bottom.
📉 #BitcoinThe price has reached its lowest level in three months. According to our sentiment data, negative comments rose to monthly highs. #Shorting on exchange has at least stopped the bleeding. $BTC social dominance has also increased, which historically is a good bottom signal. pic.twitter.com/GRiRhukXxN
— Santiment (@santimentfeed) 22 September 2022
Bitcoin’s exchange outflow registered a rebound recently after a continued decline, which is also a bullish signal suggesting a price rise in the coming days. Interestingly, BTC’s price increased slightly in the last 24 hours, but the risk-to-reserve ratio decreased, further increasing the chances of an upswing soon.
Source: Glassnode
Although the price of the king of crypto has witnessed a decline in recent weeks, investors’ confidence in the coin does not seem to be affected by the development. A recent tweet from Documenting Bitcoin revealed a massive global adoption of BTC. Therefore, the tweet suggested that several individuals from different parts of the world are trusting the coin. This may thus help BTC to push the price upwards in the coming days.
Global #bitcoin decision in 2022
—————————
1. Vietnam 🇻🇳
2. Philippines 🇵🇭
3. Ukraine 🇺🇦
4. India 🇮🇳
5. United States 🇺🇸
6. Pakistan 🇵🇰
7. Brazil 🇧🇷
8. Thailand 🇹🇭
9. Russia 🇷🇺
10. China 🇨🇳
11. Nigeria 🇳🇬
12. Turkey 🇹🇷
13. Argentina 🇦🇷
14. Morocco 🇲🇦
15. Colombia 🇨🇴 pic.twitter.com/pPKQZDWTRa— Documenting Bitcoin 📄 (@DocumentingBTC) 21 September 2022
Another positive development was revealed by CryptoQuant’s data. While BTC’s Relative Strength Index (RSI) was in a neutral position, Stochastic revealed that the market was in an oversold condition. This also led to increased chances of a northward eruption.
Source: CryptoQuant
