Data from Santiment shows that investors lose confidence as Bitcoin fails to break through resistances. The bulls will need to sustain above $20,000 to recapture the market.
Investors are leaving Bitcoin
Bitcoin price has been following a monotonous trend for more than a month, struggling around $19,000. Short-term rallies allowed the price to touch $20,200. However, it failed to surpass the key resistance at $20,800. Therefore, repeated unsuccessful attempts are now driving market participants away. All in all, we can say that the days ahead are not a good sign for the BTC price.
The market sentiment of cryptocurrencies determines the upcoming move regardless of the current price trend. BTC price is trading at the same levels without making a strong attempt to change the trend. Meanwhile, investors tend to look at other options. Therefore, the market sentiment for Bitcoin remains negative, according to data from Santiment.
Social data, on the other hand, shows a weighted sentiment score of -0.33. However, BTC social media weight dropped below 20%. As a result, we understand that interest in Bitcoin is currently declining. Also, the percentage of addresses holding more than 1000 BTC has remained stable at around 2117 addresses over the past 3 days, after a sharp drop of 26% since the beginning of September.
Additionally, the Bitcoin miner’s reserves have also been stable at 1.86 million BTC for about a month. This inactivity among miners is mainly due to the large price sales in August. Collectively, Bitcoin has broken all bull market patterns before. It’s also on its way to breaking all bear market patterns at the bottom. However, if traditional markets get worse with increasing inflation or an intensifying recession, we could see the BTC chart getting worse. Until then, a consolidated narrow trend will prevail for Bitcoin. The bulls need to clear $21,180 to take the stage again.
Bitcoin bulls go nowhere before breaking $21,180
Bitcoin price fluctuates without any strong direction belief. BTC price needs to surpass two bearish elements before the bulls can rise. One of them is a selling pressure caused by macroeconomic factors. Analysts think that at this point, Bitcoin will bottom at $ 16,020.
On the other hand, according to most analysts and traders, BTC has already hit bottoms. Therefore, buying the price action stretching to the 55-Day Simple Moving Average (SMA) would be an ideal exit scenario. $21,180 at the 55 SMA could be the exit point for the bulls if the market continues to move higher for a few more days. Analyst Filip predicts that until this happens, Bitcoin will move sideways for a while. As you follow on Kriptokoin.com, BTC is currently consolidating above $19,000.
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