The Total Crypto Market Cap (TOTAL) and BTC have experienced the impact of negative market conditions. With the market crash happening and uncertainty continuing to fuel market-wide sell offs, the Total Crypto Market Cap has also felt the heat. Today, the TOTAL stands at $2.82 Trillion following the rather not so bad performance on the day after yesterday’s volatility.
Nonetheless, some whales have lost faith and proceeded to offload large numbers of cryptocurrencies. BTC whales, for instance, have offloaded 6,813 coins over the last one week due to the unfavorable market conditions. This has been caused by the recent Bitcoin price drop and increased FUD in the general crypto market.
Large Investors Offload Over 6,813 BTC Amid The Market Crash
As per analysis by Santiment, an on-chain and social metric analytical platform, BTC whales and sharks ( those with wallets holding 10+ $BTC) have dumped 6,813 Bitcoin since last week. This is the largest dump by BTC whales since July last year.
https://twitter.com/santimentfeed/status/1894855749890867224
Bitcoin’s price tends to correlate with the behavior of whales and sharks. Once these investors start taking mild profits as seen recently, the price suffers. The price of BTC could either dip further or consolidate around the current market levels.
Additionally, retail traders are suppressing significant price recovery through engaging in “buying the dips.” This is because prices move the opposite direction of the crowd’s expectations. For BTC’s price to recover and surge upwards, this will only happen “as soon as retailers are no longer interested in dip buying.”
Bitcoin Price Performance and Technical Analysis
Bitcoin briefly dropped to the $82,242.90 price level earlier today. However, the price has recovered above the $86K and currently stands at $86,748.70. BTC is facing short-term resistance at $87,652.10 which if breached could see prices move towards the next resistance at $89,249.69.
Failure to move towards breaching the afore-mentioned resistance levels could see the price of BTC drop towards the short-term support at $85,074.87. If this price level is breached a future dip is expected with the next support zone at $83,748.57.
The Relative Strength Index (RSI) for BTC reads 54.33 which is slightly above the neutral point (50). This RSI depicts neutral market momentum with the substantial rise from 42.18 suggesting increasing buying pressure.
Nonetheless, bullish momentum will become stronger when the RSI breaks above 60. A dip below the neutral point in the near future could signify weakening momentum.
On the other hand, BTC’s Moving Average Convergence Divergence (MACD) indicator shows a bullish crossover. The MACD line at -241.60 is above the signal line positioned at -622.33 with the divergence getting wider.
BTC’s histogram is also positive with the histogram bars having a deep green color. This indicates a strong positive momentum within the current price movement. If the momentum persists a surge in the price of BTC could be experienced. Traders and investors should thus monitor both the momentum and the volume of BTC closely.
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