Bitcoin: BTC Likely to Fall, According to Crypto Analytics Firm Santiment
According to crypto analytics firm Santiment, Bitcoin (BTC) is showing a potential bearish pattern on the charts.
Santiment noted that 1.69 million Bitcoins, worth more than $33 billion at press time, moved to exchanges between September 7 and 13.
That number represents a weekly spike in foreign exchange inflows since October 2021, according to Santiment.
A 2021 study published by Santiment indicates that large increases in exchange capital inflows tend to cause crypto asset prices to drop by an average of 5%. To calculate that result, the analytics firm tracked the price movements of 1,000 crypto assets with a market capitalization of at least $1 million.
Regarding the crypto market in general, Santiment noted this week that crypto traders don't appear to be interested in buying down prices, signaling fear and uncertainty in the market.
“After yesterday's big drop, crypto traders are showing signs of getting a bit impatient with the sudden drop due to inflation-related fears. The amount of buying interest now is very small compared to when the price rose three days ago, indicating FUD."
Bitcoin is trading at $19,749 at the time of writing. The top-rated crypto asset by market capitalization is down 0.73% over the past 24 hours and down over 7% over the past seven days. BTC is still 71% below its all-time high of more than $69,000, which it reached last November.
Analytics firm Glassnode also noted that the seven-day moving average Bitcoin trading volume hit a one-month low of $2.59 billion on Friday. Glassnode also highlighted that the seven-day moving average of the average BTC transaction volume just hit a one-month low of $244,630.36.
Sep 17, 2022