Bitcoin traded 3% lower than the previous day and is currently down to $29,278. However, the number of addresses with more than 0.1 BTC reached an all-time high.
Ever since Bitcoin [BTC] crossed the $30k mark, traders and enthusiasts of the king coin have rejoiced in its position. The start of Q2 also saw a number of newcomers in the crypto community showing a renewed interest in BTC.
However, more recently, BTC changed hands below the $30k mark at $29,278 after falling almost 3% in the last 24 hours. Therefore, it is worth analyzing what disturbed BTC’s path to reach new highs in the $30k zone.
Was Everything Temporary?
According to data from CryptoOnchain’s CryptoQuant analysis, an increase in BTC selling led to a price correction in the last 24 hours. According to the data analyzed, long-term BTC holders who sold their assets caused the price of the king coin to drop.
However, the analyst also noted an increase in the BTC exit trade balance. This meant that a growing number of BTC investors were moving their coins into wallets. Therefore, this could offer BTC some much-needed support to get back on its run to $30k.
According to another CryptoQuant analysis, BTC’s ongoing trajectory could be similar to the 2018 bear market. Prior to the 2019 bull run, the BTC price held significantly below the realized price in 2018. Before BTC could embark in its 2023 bull run, the final capitulation phase saw BTC trade much lower than its realized price.
It is important to bear in mind that in the ‘crypto’ space, the words of Brian Armstrong, co-founder, and CEO of Coinbase, continue to resonate about the company’s possible departure from the United States and its predisposition to a “long” legal confrontation against the SEC.
In the rest of the market, notable falls in most crypto assets. Ripple (XRP), Polygon (MATIC), as well as Solana (SOL), are down between 5% and 7%. Cardano (ADA), leaves 3%.
So, Year of the Bulls?
Data from the intelligence platform Santiment showed that sentiment-weighted toward BTC witnessed a surge starting on April 18. This indicated that the traders in the market had a positive outlook toward BTC. However, social dominance and market value to realized value (MVRV) witnessed a decline as the news is still unfolding.
Although the MVRV ratio saw a notable increase since the beginning of March, a drop indicated a subtle bearish trend around the cryptocurrency.
Recently, BTC’s Relative Strength Index (RSI) stood at 57, while the Stochastic RSI stood at 73.8. With the RSI and Stochastic RSI in neutral zones, the price of BTC could go up or down, depending on further buying or selling pressure from the market. The neutral positions also did not indicate a significant bullish or bearish bias.
Despite the neutral market sentiment at the moment, BTC saw growth in some areas. For instance, according to data tweeted by the on-chain intelligence platform Glassnode, the number of addresses with more than 0.1 BTC reached ATH on April 19.
By Audy Castaneda
