- Bitcoin (BTC) is flashing a potentially bullish indicator amid an overall crypto market downtick, according to the digital asset analytics firm Santiment.
- The firm notes that the percentage of the BTC network’s available supply in profit is 84.4%, the lowest level in 2 months.
- However, other factors such as decreased enthusiasm from traders and sell-offs by miners are contributing to the current market downtrend.
Bitcoin shows bullish signs amid a market downtick, but other factors such as trader sentiment and miner sell-offs could impact its performance. Learn more about the current state of the BTC market.
Bitcoin’s Bullish Indicator Amid Market Downtick
Bitcoin, the top-ranked crypto asset by market cap, is showing a potentially bullish indicator despite the overall crypto market downtick. According to digital asset analytics firm Santiment, 84.4% of the BTC network’s available supply is in profit. This ratio is at its lowest level in 2 months, a condition that generally justifies more bullish conditions. At the time of writing, BTC is trading at $59,170, up more than 2.5% in the past 24 hours but down more than 8% in the past seven days.
Factors Contributing to the Market Downtick
Despite the bullish indicator, several factors are contributing to the current downtick in the BTC market. Analytics firm CryptoQuant points out that market sentiment towards Bitcoin is waning, evident from negative Coinbase premiums and lesser leverage in futures. This decrease in enthusiasm suggests a cautious approach from traders. Additionally, a slowdown in BTC demand from large investors, or whales, is evident. The growth peaked at 12% monthly in late March, now down to 6%. This deceleration could affect potential price rallies, which rely on robust whale demand. CryptoQuant also notes that miners have been selling off BTC, adding to the market’s supply and potentially undermining price supports. Increased short positions also indicate that traders have been betting on the top crypto asset dropping lower.
Conclusion
In conclusion, while Bitcoin is flashing a potentially bullish indicator, other factors such as decreased enthusiasm from traders, sell-offs by miners, and a slowdown in demand from large investors are contributing to the current market downtick. As always, investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets.
