Bitcoin Drops Below $43,000: Market Sentiment Takes a Hit

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9 Feb 2024
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Bitcoin Drops Below $43,000: Market Sentiment Takes a Hit
By AZC News | Feb 06 2024
Bitcoin's value hovered just below the $43,000 threshold, while market sentiment continued to lean towards a bearish outlook.Bitcoin Drops Below $43,000: Market Sentiment Takes a Hit
Bitcoin's price was once again approaching the $43,000 mark at the time of this update. Anticipation surrounds the upcoming halving event, which will reduce Bitcoin's supply, potentially triggering an uptick in demand and fueling a bullish rally.

CoinMarketCap reported a dip in BTC's price to $42,226 on February 5th. However, the cryptocurrency quickly rebounded and was teetering just below $43,000 as of the latest data.

At the moment, BTC is trading at $42,861.96, boasting a market capitalization exceeding $840 billion. CryptoQuant's analysis, conducted by oinonen_t, indicates several factors that could lead to a supply shock due to heightened demand. The imminent halving and the role of ETFs are emphasized, with the analysis pointing out the potential impact on Bitcoin's issuance rate.

According to the analysis: "The recently opened spot ETF floodgates will create an environment of potential bitcoin supply shock: Approximately 80% of bitcoin’s circulating supply is liquid and most of investors are heavily in profit, thus they’re less likely to sell."



As demand for Bitcoin is expected to rise, historical trends suggest that an increase in demand, coupled with a stable or diminishing supply, typically results in a surge in the asset's value.

Signs Pointing Towards a Bull Rally for Bitcoin
While the potential for increased demand in BTC hinted at a bullish trend, further examination of diverse datasets was conducted to ascertain if a full-fledged bull rally was on the horizon.

Mignolet, an analyst and author at CryptoQuant, conducted an analysis using BTC’s Binary CDD, a metric designed to interpret the movements of long-term holders. The analysis revealed that the 182-day moving average of binary CDD data signaled the onset of a bullish trend, with the green box indicating advancement beyond the accumulation phase. A significant breakthrough of this range could potentially trigger a complete upward price cycle.



To gauge the likelihood of a rally, a thorough examination of BTC’s daily chart was undertaken. The analysis unveiled an uptick in Bitcoin's Relative Strength Index (RSI) from the neutral mark. Moreover, the Moving Average Convergence Divergence (MACD) displayed a bullish advantage, suggesting a high likelihood of a bull rally. However, the Chaikin Money Flow (CMF) appeared bearish as it recently declined.

Related: South Korea's Regulator Meets US SEC's Gensler on Spot Bitcoin ETFs

Interestingly, despite positive indicators for a bull rally, whales took the opportunity to accumulate more coins. Over the last six days alone, there was a notable 2.5% growth in the number of wallets holding balances between 1,000 and 10,000 BTC.

Surprisingly, despite these optimistic developments, sentiment around Bitcoin remained bearish, as reflected in the decline of Bitcoin’s Weighted Sentiment chart last week.

Disclaimer. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own rBitcoin Drops Below $43,000: Market Sentiment Takes a Hit
By AZC News | Feb 06 2024

Bitcoin's value hovered just below the $43,000 threshold, while market sentiment continued to lean towards a bearish outlook.Bitcoin Drops Below $43,000: Market Sentiment Takes a Hit
Bitcoin's price was once again approaching the $43,000 mark at the time of this update. Anticipation surrounds the upcoming halving event, which will reduce Bitcoin's supply, potentially triggering an uptick in demand and fueling a bullish rally.

CoinMarketCap reported a dip in BTC's price to $42,226 on February 5th. However, the cryptocurrency quickly rebounded and was teetering just below $43,000 as of the latest data.

At the moment, BTC is trading at $42,861.96, boasting a market capitalization exceeding $840 billion. CryptoQuant's analysis, conducted by oinonen_t, indicates several factors that could lead to a supply shock due to heightened demand. The imminent halving and the role of ETFs are emphasized, with the analysis pointing out the potential impact on Bitcoin's issuance rate.

According to the analysis: "The recently opened spot ETF floodgates will create an environment of potential bitcoin supply shock: Approximately 80% of bitcoin’s circulating supply is liquid and most of investors are heavily in profit, thus they’re less likely to sell."



As demand for Bitcoin is expected to rise, historical trends suggest that an increase in demand, coupled with a stable or diminishing supply, typically results in a surge in the asset's value.

Signs Pointing Towards a Bull Rally for Bitcoin
While the potential for increased demand in BTC hinted at a bullish trend, further examination of diverse datasets was conducted to ascertain if a full-fledged bull rally was on the horizon.

Mignolet, an analyst and author at CryptoQuant, conducted an analysis using BTC’s Binary CDD, a metric designed to interpret the movements of long-term holders. The analysis revealed that the 182-day moving average of binary CDD data signaled the onset of a bullish trend, with the green box indicating advancement beyond the accumulation phase. A significant breakthrough of this range could potentially trigger a complete upward price cycle.



To gauge the likelihood of a rally, a thorough examination of BTC’s daily chart was undertaken. The analysis unveiled an uptick in Bitcoin's Relative Strength Index (RSI) from the neutral mark. Moreover, the Moving Average Convergence Divergence (MACD) displayed a bullish advantage, suggesting a high likelihood of a bull rally. However, the Chaikin Money Flow (CMF) appeared bearish as it recently declined.

Related: South Korea's Regulator Meets US SEC's Gensler on Spot Bitcoin ETFs

Interestingly, despite positive indicators for a bull rally, whales took the opportunity to accumulate more coins. Over the last six days alone, there was a notable 2.5% growth in the number of wallets holding balances between 1,000 and 10,000 BTC.

Surprisingly, despite these optimistic developments, sentiment around Bitcoin remained bearish, as reflected in the decline of Bitcoin’s Weighted Sentiment chart last week.

Disclaimer. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own rBitcoin Drops Below $43,000: Market Sentiment Takes a Hit
By AZC News | Feb 06 2024

Bitcoin's value hovered just below the $43,000 threshold, while market sentiment continued to lean towards a bearish outlook.Bitcoin Drops Below $43,000: Market Sentiment Takes a Hit
Bitcoin's price was once again approaching the $43,000 mark at the time of this update. Anticipation surrounds the upcoming halving event, which will reduce Bitcoin's supply, potentially triggering an uptick in demand and fueling a bullish rally.

CoinMarketCap reported a dip in BTC's price to $42,226 on February 5th. However, the cryptocurrency quickly rebounded and was teetering just below $43,000 as of the latest data.

At the moment, BTC is trading at $42,861.96, boasting a market capitalization exceeding $840 billion. CryptoQuant's analysis, conducted by oinonen_t, indicates several factors that could lead to a supply shock due to heightened demand. The imminent halving and the role of ETFs are emphasized, with the analysis pointing out the potential impact on Bitcoin's issuance rate.

According to the analysis: "The recently opened spot ETF floodgates will create an environment of potential bitcoin supply shock: Approximately 80% of bitcoin’s circulating supply is liquid and most of investors are heavily in profit, thus they’re less likely to sell."



As demand for Bitcoin is expected to rise, historical trends suggest that an increase in demand, coupled with a stable or diminishing supply, typically results in a surge in the asset's value.

Signs Pointing Towards a Bull Rally for Bitcoin
While the potential for increased demand in BTC hinted at a bullish trend, further examination of diverse datasets was conducted to ascertain if a full-fledged bull rally was on the horizon.

Mignolet, an analyst and author at CryptoQuant, conducted an analysis using BTC’s Binary CDD, a metric designed to interpret the movements of long-term holders. The analysis revealed that the 182-day moving average of binary CDD data signaled the onset of a bullish trend, with the green box indicating advancement beyond the accumulation phase. A significant breakthrough of this range could potentially trigger a complete upward price cycle.



To gauge the likelihood of a rally, a thorough examination of BTC’s daily chart was undertaken. The analysis unveiled an uptick in Bitcoin's Relative Strength Index (RSI) from the neutral mark. Moreover, the Moving Average Convergence Divergence (MACD) displayed a bullish advantage, suggesting a high likelihood of a bull rally. However, the Chaikin Money Flow (CMF) appeared bearish as it recently declined.

Related: South Korea's Regulator Meets US SEC's Gensler on Spot Bitcoin ETFs

Interestingly, despite positive indicators for a bull rally, whales took the opportunity to accumulate more coins. Over the last six days alone, there was a notable 2.5% growth in the number of wallets holding balances between 1,000 and 10,000 BTC.

Surprisingly, despite these optimistic developments, sentiment around Bitcoin remained bearish, as reflected in the decline of Bitcoin’s Weighted Sentiment chart last week.

Disclaimer. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.esearch when making a decision.esearch when making a decision.

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