Bitcoin price continued to fall but investors’ bullishness continued to rise
Bitcoin price is currently changing hands at $45,126, down 10% over the past seven days. The recent days have not been the best moments for the leading cryptocurrency, as it fell by almost 15%. Yesterday, the coin closed under $45,000 for the first time in 22 days, which should have created some bearish sentiment.
BTC/USD 4-hour chart | Source: TradingView
The rise in buyers means this for Bitcoin price in the days to come
In the last 24 hours, the lowest trading price of Bitcoin was recorded at $44,717 and the highest trading at $45,983. Data from CoinMarketCap shows that the amount of Bitcoin traded in the past 24 hours is about $33.8 billion, and the market capitalization recorded $849 billion.
The crypto market recently suffered a massive bearish wave that wiped out previous gains quickly. Some analysts have a negative view, saying that the market is entering a downward phase and may take several months to regain momentum.
However, that is not the case as Bitcoin fell and investors’ bullishness continued to rise. At press time, the market was making record performances in multiple sectors.
Although the price is in the $45,000 region at press time, there should be some expectation of selling due to BTC’s performance over the past few days. Instead, more Bitcoins are being bought now, compared to the time of consolidation in August last week. Currently, addresses holding at least 10 BTC reached a one-month low.
Bitcoin addresses with >= 10 BTC | Source: Glassnode
Now, this could be an indication that investors backed out of the market and sold their holdings. Except, that is not the case as over the month, daily active addresses are up by 400k, and new addresses rose by 200,000 as well.
This meant that at the moment, more Bitcoin was being bought as addresses balance was rising to more than just 10 BTC. This was also visible on exchange positions which showed that in the last ten days, about 70,000 BTC was bought. This purchase was worth well over $3.1 billion.
Bitcoin exchanges show buying dominating | Source: Glassnode
This narrative hasn’t yet changed. At press time, buy orders dominated the market by at least 4.200 BTC ($190 million).
Bitcoin buy vs. sell orders | Source: Intotheblock
“Number of Addresses in Profit (7d MA) just reached a 1-month low of 32,502,351.625. A previous 1-month low of 32,524,142.929 was observed on 11 September 2021”, Glassnode stated. Also, Transaction Volume (7d MA) just reached a 2-year high of 192,144.377 BTC. Previous 2-year high of 191,357.965 BTC was observed on 30 August 2021.
Long-term holders are already not selling as 10-year old supply just reached an ATH of 2.4 million BTC. And along with them, even the mid-term holders have stepped back when it comes to selling. They have firmly returned to hold as the supply last spent between 3-12 months touched a 2-month low. The buying trend is so strong that addresses with balance have reached a 4-month high, matching May ATH levels. Thus, the wise thing to do right now is to buy Bitcoin ASAP.
Bitcoin spent between 3-12 months have dropped significantly | Source: Glassnode
Analyst Scott Melker attributes Bitcoin’s recent freefall to profit-taking by whales after the leading cryptocurrency’s price peaked.
“Whales sold Bitcoin on the day El Salvador officially made it legal,” said Melker.
However, there is also an optimistic opinion that the Bitcoin price only corrects after the hot rally and will soon regain the $50,000. The Relative Strength Index (RSI) is already in the bearish-neutral zone. This indicates that a price flip could be coming soon, and buying now will result in solid profits later.
The top 10 cryptocurrencies on the CoinMarketCap rankings are led by Cardano (ADA) and Polkadot (DOT) with gains of over 8% on the day.
“Cardano jumped a quick 12.5% in the past 15 hours following last week’s FUD toward the third market cap crypto project. Social spikes continue to tell the story. When the ADA crowd gets overly hyped or fearful, the price trend will typically shut down”, Santiment tweeted.
Most of today’s altcoin market is red. The overall cryptocurrency market cap now stands at $2.066 trillion. Bitcoin Dominance is at 41.2%.
- Long-Term Investors Are Keeping Their Hands Strong During The Recent Decline In Bitcoin Price
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