Altcoins are stealing the show from BTC, while on-chain indicators are not as green as before either. Are more support tests ahead for the price of Bitcoin?
The price of Bitcoin is testing lower levels again after the bulls failed to break above the $60,000 resistance. Bitcoin’s price found renewed support overnight Monday, May 3rd, from the $55,000 level after hitting local highs near $59,000 in early trading. Meanwhile, indicators suggest that the slump is not over yet.
Discover the world’s most interesting financial news with the mobile app Born2Invest. The app provides its readers access to the latest news in global business, stock market, finance news, and also trending topics like bitcoin, cryptocurrency, and biotech. Don’t waste your time scrolling the internet, download for free the Born2Invest mobile app, available for both Android and iOS devices.
Over $900,000,000 in BTC as potential selling pressure for the price of Bitcoin
One metric that could soon cause problems for the bulls is the total BTC holdings on cryptocurrency exchanges.
While the past year has seen a general steep downward trend, local spikes in supply, times when traders send their Bitcoin (BTC) back to their exchange accounts for a potential quick sale, tend to reflect a more bearish mentality. For example, according to Bybt data, 16,222 BTC have found their way to leading exchange Binance in the last seven days. This represents the equivalent of over $900 million in potential selling pressure for the bitcoin price.
Binance is not alone in this trend, OKEx, Huobi, Bitfinex and Kraken have all seen their BTC balances increase in the last 24 hours.
Greed is on the rise
An indicator that is also not unknown is back, always urging caution. According to the Crypto Fear & Greed Index, which measures trader sentiment based on various weighted factors, the appetite for a sell-off is rising, even if the price trend is no longer positive. On Tuesday, May 4th, the index indicates that the market sentiment is getting “greedy” again with a benchmark of 68/100.
Admittedly, this value is still a good bit below the highs in the 90s range, however, volatility may ensure that the index does not stay in the same zone for long. On April 27, for example, the index was at just 27/100. “Greed” can accordingly turn into “extreme greed” within days or even faster. In times like these, a sell-off is almost inevitable. Accordingly, the indicator should be kept in mind.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [uMobix Affiliate Program Review]
This week, we're covering everything from hustle culture to spying on kids, making this affiliate digest look like it has...
Stanford University Returns Millions from FTX
Between November 2021 and May 2022, Bankman directed donations of more than €5.5 million from FTX Group to Stanford University....
Biova Project Launched an Equity Crowdfunding Campaign on Mamacrowd
Biova Project makes deals with players in large-scale distribution and production to recover, store, and transform unsold food, or food...
Novo Nordisk Plans to Open a Tech Headquarters in Spain
Novo Nordisk increased its profit by 42.5% in the first half of 2023, reaching 39,242 million Danish crowns (€5.26 million)....
Immorente Invest Maintains its Financial Stability
Although the occupancy rate has fallen from 92% to 90.2% compared with the end of 2022, the company expects this...
Biotech1 week ago
Asabys Partners Leads a €14 Million Round in Gradient Denervation
Markets2 weeks ago
Markets Are Looking Iffy, but That’s Seasonal
Biotech4 days ago
Vertex Obtains EMA Validation to Expand Indications for Kaftrio
Crowdfunding1 week ago
58 Crowdinvesting Platforms Authorized Under the New Regulation in Europe