Cryptocurrency News

3 concrete signs that bitcoin bears have stopped selling


Bitcoin (B T c) On May 26, New York’s opening session increased the price, $ 40,000. Breach of Levels for the first time in five days as traders dispel concerns about China’s crypto ban and the United States. Crypto tax offer.

The benchmark cryptocurrency rose to a high of $ 40,855 before falling due to profit-taking sentiment.

Meanwhile, analysts such as Cheds and Corus AK expect BTC / USD to reach $ 42,000 in the short term, but are advised to be cautious on the extended position until the spot market confirms a clear rapid breakout. is.

If bitcoin recovers its 200-day Simple Moving Average (200-day SMA), which currently stands at about $ 40,600, Cheds in particular showed a rapid conviction. The wave holds a history of serving as a strong price floor against long-term recessionary trends.

Bitcoin briefly closed above the 200-day SMA. Source: TradingView.com

On-chain data gained more support for bitcoin’s faster approach. At least three blockchain-centric metrics suggest that cryptocurrency fell after $ 30,000. Crashed till On 19 May.

Bitcoin exchange deposits fall

On-chain analytics platform GlassNode Manifested Earlier today, the total number of crypto addresses sending bitcoin tokens to cryptocurrency exchanges has dropped to an average time frame of seven days.

On May 25, 2021, the previous 1-month low was seen at 6,356.643. Source: GlassNode Alert

The metric, dubbed as the “number of addresses deposited in exchanges”, refers to the number of unique addresses that appear as the sender in transactions that send money to the exchanges. Simply put, this reflects a decline in the number of new bitcoin traders who want to transfer BTC to exchanges to sell / trade for other assets.

New traders / investors are more likely to react emotionally to wild fluctuations in cryptocurrency prices. But Glasnod is showing a decline in bitcoin depositors unique to metric exchanges, indicating a drop in potential selling pressure.

NVT Classic Reaches Bullish Reversal Level

Meanwhile, the seven-day average output on bitcoin’s network value to transaction signal has fallen to its 14-month low, Glasnod data. Shows.

As soon as the NVT signal hits the low of March 2020, the bitcoin slowdown ends. Source: Glasnode alert

As the chart above shows, the bitcoin price reacted sharply when the NVT signal touched 500 on the hourly chart. Based on the fractal sentiment alone, the metric now suggests a more rapid reversal in the bitcoin market as it is 36% above its previous low of $ 30,000.

Cache address uptrend

Another Glasnod metric suggests that the latest bitcoin price decline has shaken investors’ long-term bullish sentiment. With the BTC / USD exchange rate reaching $ 30,000 on May 19, the “number of accumulation addresses” claimed to be at a record high, bringing the total to above 545,000.

Glasnode defines accumulation addresses that have at least two incoming bitcoin transactions and that have never spent money. The analytics service considers these addresses to be long-term holders.

Sharp increase in accumulation addresses during BTC price crash Destroyed billions in leverage The posts suggest that bulls with a long-term setup absorb sales pressure. This is another sign of recessionary exhaustion as bitcoin attempts to flip $ 40,000 into a new support level.