Owners of the largest cryptocurrency, Bitcoin [BTC]may have reason to be happy in the coming days, blockchain analysis platform, CentimeterRecently found.
Accordingly, the trade that ended last weekend has increased the interest in BTC on several social platforms.
Santiment further explained that among the 100 top cryptocurrency assets, BTC was in discussions over 26% for the first time since mid-July.
He added that this past weekend’s increase in the weighted social sentiment of the king coin is an indication that the worst level of FUD in the BTC market remains. According to the analytics platform, this usually triggers an increase in asset prices.
Not very fast
Although the correlation between the increase in social activity of the cryptocurrency asset and the corresponding growth in its price cannot be explained, the movement of BTC on the price charts suggests that the recent rally in the asset’s social activity cannot be taken as a conclusive proof. Price increase soon.
First, according to the information from CoinMarketCap, BTC traded at $18,763.01, down 1.40% in the last 24 hours. Transaction volume, however, increased by 14.18 percent during the same period.
A downturn occurs when the price of an asset decreases and its trading volume increases over the same period. This is usually indicative of a bearish trade. Therefore, BTC sellers have been on a high over the past 24 hours.
BTC daily chart
A look at the coin’s movement on the daily chart confirms this position. At the time of going to press, the asset’s cash flow index (MFI) stood at 22.18 with an oversold position. After breaking the 50-neutral line on September 15th, the BTC MFI fell continuously.
The Relative Strength Index (RSI), which has been in free fall since September 13, was at 39.90 at the time of writing. The constant decline in these key indicators indicates only one thing – buying pressure is waning.
Additionally, the position of the Moving Average Convergence Divergence (MACD) at the time of the press release gave more credence to the view that sellers dominate the BTC market.
Represented by the red histogram bars (albeit short) was the downward intersection between the MACD line and the trendline on September 18, indicating the start of a new bearish cycle.
Finally, the BTC Directional Movement Index (DMI) shows that sellers dominate the BTC market on the daily chart.
At press time, the strength of the sellers (red) was stronger at 24.36 than the buyers (green) at 10.74. It has been like this since September 14th.