- BTC unique address activity declining, an uptick would clear clouds for bulls
- Bitcoin’s Twitter sentiment negative, the case for near-term upsides
JAIPUR (Coinchapter.com) – Bitcoin’s recent market decline has led many to jump ship altogether in the last two months. The reduction in the number of unique BTC addresses is a testimony to the fact.
“All eyes are on #Bitcoin & its current market health this weekend. We have seen a steep drop-off in the unique amount of addresses interacting on the $BTC network ever since mid-May’s market correction. An uptick in them can rapidly forewarn a turnaround. “, said team Santiment in its latest tweet.
Daily active BTC addresses clocked a high of 1.36 million at Bitcoin’s $65,000 high on April 14, 2021. That number has now dropped to 469,580. That’s a 66% depreciation from the all-time high figure in the last bullish session. And that’s not all. The daily active Bitcoin address count is down 38% from the 7-day MA of 737,430 addresses. And 39% from the 7-day MA of 737,430 addresses. Overall, BTC addresses have followed the flagship cryptocurrency’s price action throughout.
The reason is simple. Folks who joined the Bitcoin investing game later, in the run-up to $65,000, sold off their BTC holdings. Also, investors who entered long positions quite some while back would want to take profits if the price crashed any lower. In both scenarios, active addresses saw their activity get erased after a market dump.
Only a gradual rise in active Bitcoin addresses can bring back bullish sentiment alive.
Negative Bitcoin Sentiment
If a reversal in Bitcoin’s daily active address downtrend can recall bullish sentiment, so can the BTC market’s immense negative view on Twitter. How?
“#Twitter’s sentiment toward #Bitcoin remains negative in the amount of volume and tone that our algorithm is picking up. Generally, when there is negativity, there is a higher degree of a price upswing to catch the crowd off guard.”, Santiment analysts said in a recent tweet.
As per the graph above, Bitcoin has mostly posted an upside correction in prices whenever social media sentiment went south. This year’s most significant drop in BTC prices coincided with overhyped and too-good to believe positive commentary on crypto Twitter.
Researchers at Santiment are sanguine about the certain rise in Bitcoin prices with rising ‘fearful’ sentiment about BTC on Twitter. It’s a clear indication to bulls to reopen long positions for the benchmark cryptocurrency.
And if further, assurance is deemed necessary, here’s what Amsterdam-based crypto analyst and trader said, “#Bitcoin at $30,000-36,000 is still a great area of interest if you want to start investing in #Bitcoin…”