In April, bitcoin (BTC) recovered above $30 000 for the first time in 10 months, but has already rolled back 10%. However, a number of onchain metrics are giving bullish signals. This could bode well for a quick turnaroun
Bitcoin (BTC) lost 10% in the last week, but onchain indicators suggest that a rebound to $30,000 is more likely than a drop below $25,000..
With investors’ confidence in the crypto industry as a whole declining, they may soon start to reallocate their funds from the altcoin segment to bitcoin.
Investor confidence at monthly low
Satiment’s sentiment data shows that social perception of bitcoin reached euphoric levels on March 12 as a reaction to the U.S. banking crisis.
But once it crossed $22,000, investor confidence began to decline noticeably.
In the end, the Weighted Sentiment indicator fell to its lowest level since March 2.
As a result, the Weighted Sentiment indicator fell to its lowest level since March 2.. It slipped from 1.53 to -0.70 between April 11 and April 24.
As this onchain metric suggests, the number of negative mentions of BTC now exceeds the number of positive mentions on social platforms.
According to this onchain metric, the number of negative mentions of BTC on social platforms now exceeds the number of positive mentions.
At first glance, a decline in the social sentiment indicator, coupled with increased bearish pressure, leads to a drop in the price of.
However, a dystrophic high in the index could signal the end of the selling fever and the beginning of a new bullish cycle.
Historically, the price of an asset tends to move in the opposite direction to that indicated by extreme social expectations.
Historically, the price of an asset tends to move in the opposite direction to that indicated by extreme social expectations.
If such a pattern confirms itself, the BTC exchange rate may rebound in the near future.
BTC whales make strategic purchases
A more clear positive signal is the behavior of the whales.
These big players have traditionally shown high correlation with bitcoin price movements, and their behavior indicates that bitcoin may now be entering another phase of accumulation.
The price rebound from the $30 000 resistance level triggered active sell-offs throughout the bitcoin ecosystem.
However, onchain data shows that investors with between 100 and 1,000 BTC in their wallets bought the currency on the fall.
From April 16 to 24, they increased their aggregate balance by 20,000 BTC.
The size of the investment from this category of investors was almost $540 million (at current prices of around $27,400).
Such a powerful influx of investment from the whales in such a short period of time indicates the growth of confidence. As history shows, whale behavior tends to affect retail investors as well.
Accordingly, it may determine the reversal of the BTC rate.
BTC: bulls need to recover above $28 300
According to IntoTheBlock’s statistics on In/Out of Money Around Price positions, bitcoin rate is unlikely to fall below $27,000;
Recall, this metric tracks addresses that are near breakeven level and reflects the distribution of hodlers along average purchase price lines.
The $27 500 resistance area is now represented by 61k. addresses holding 13,500 BTC.
This zone looks weaker compared to the support around $27 100 formed by 252 ths.. addresses that bought 389,000 BTC at this average price.
The next resistance in the area of $28 350 (1.98 million hodlers owning almost 756,000 BTC) must be broken to trigger a bullish reversal.
To trigger a bullish reversal, bitcoin must break the following resistance in the $28 350 area (1.98 million hodlers owning nearly 756,000 BTC).
This barrier should prove to be a tough nut to crack for the bulls, but its break could cause a rally to $32,000.
In/Out of the Money.
In the meantime, the bullish scenario for bitcoin will be canceled if the currency does fall below strong support of $27,000.
In that case, a drop to $24 500 is likely, where bulls may regroup.