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.
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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.
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