On-Chain data reveals a lot of positives for bitcoin even though it failed to breach USD 20K.
Rallying on the back of the equities market, on 26 Sept.BTC price resisted its downward trend to turn positive for a short while on 27 September.
For the Bulls, sadly, the positive growth of cryptocurrencies and stock fell quickly and BTC sacrificed the maximum of its Intraday Profit to slip below USD 19K.
The downward trend for Bitcoin has been seen since 25 March.
The price of BTC has only been able to hold itself up breaking the trendline for a short while before sliding back, succumbing to the Bearish trend.
Arcane Research Views BTC’s breaching of USD 20K, for a short while as not much of significance, since the Futures premiums, are low even now and does not do much to restore the risk-taking ability of the market.
Given the turmoil in the Macroeconomic environment, the traders are very pessimistic in their approach to investing long. Add to this the fear of unfriendly crypto regulations.
Silver Lining For Bitcoin
For the past 103 days, it has been observed that Bitcoin prices are trading between USD 24.3K to USD 17.6K. The trigger to break the trend has not happened yet.
All is not dark and despair for BTC. Glassnode, an On-Chain analytics provider, observed that investors need to hold their ground and not sell and move out at the current price.
Indicators that keep track of Bitcoin, coming back in circulation, after remaining untouched for a minimum, find the shift to be low. A very positive sign. Mature Investors, who have been in the market for a long time and are aware of the volatile nature of the market are holding on and are not selling at the current price.
Even though Bitcoin is 72 percent down, mature investors’ lack of panic selling could be seen as a very positive sign.