The cryptocurrency market has been a rollercoaster ride in recent years, with Bitcoin (BTC) being the most popular digital asset on the planet. As per the reports shared by Santiment, the analytics firm, the current market situation of Bitcoin is showing a pattern similar to that of 2019, which could have some investors on edge.
According to Santiment’s metrics, BTC is attempting to make new local all-time highs, and the current price action has been pretty resilient lately, hovering closer to the $30,000 mark. The trading volume at the start of the recent rally was healthy, but things started to slow down as the price inched higher, signaling exhaustion in the price action.
One of the most significant indicators of concern is BTC’s Social Volume and Social Dominance, which are at their highest level in a year, indicating that the crowd is getting excited.
This usually precedes a local top. Furthermore, BTC’s Dormant Circulation (5y) is showing a significant spike in the number of dormant coins for the past 5 years that have started moving again, indicating that some whales may be feeling jittery.
Santiment also observed that the shorters on AAVE have a nice track record of being blown up, and the highest spikes in Total borrowed WBTC saw them mark the local bottoms. Currently, we are seeing cautious borrowing of WBTC at this price range, nothing too insane yet but looks like folks have started to short.
The MVRV Long/Short difference is another concern for investors as it’s showing a similar pattern as 2019 emerging. Bottoming zone checked. MVRV L/S momentum pushing it past 0 checked. If history repeats, then we might see a sharp spike marking a local top and a dreadful bleedout like 2019.
However, macro conditions today are very different from those of 2019, and it remains to be seen how BTC will navigate through the chaos. Despite the potential challenges ahead, many investors and traders in the crypto world remain bullish on Bitcoin’s long-term prospects. It will be interesting to see how the situation unfolds in the coming weeks and months.
Read more:
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- Comparing Gold And Bitcoin Performance During Inflationary Pressures: A Look At The 1970s Vs. The 2020s