In a recent development, market intelligence platform Santiment has issued a cautionary note for Bitcoin traders. According to their on-chain analysis, a price correction is likely due to a surge in profit-taking activities. Interestingly, this comes when Bitcoin has seen a 1.2% price increase, pushing its value to approximately $26.6k.
📈 #Bitcoin has continued to see 5-month high levels of unique address activity, with an average of 1.1M $BTC addresses sending and receiving coins per day. The +5% price rise over the past 3 days has also caused profit taking to hit a 2-month high today. https://t.co/GiGGABXv0s pic.twitter.com/f9PaTXjaut
— Santiment (@santimentfeed) September 15, 2023
Moreover, the cryptocurrency market has been a rollercoaster, especially with the US CPI and PPI data release. Consequently, the FTX liquidation plan has added another layer of volatility. Significantly, Santiment’s observations coincide with this market spike, noting that profit-taking in the Bitcoin market has reached a two-month high in the past 24 hours.
Additionally, despite the market’s uncertainty, Bitcoin’s unique address activity continues to grow exponentially. The network has consistently maintained an average of 1.1 million addresses in daily transactions for the past five months. Hence, this suggests that the Bitcoin network remains robust despite fluctuating market conditions.
In another development, a Bitfinex report revealed that Bitcoin’s open interest has outperformed the entire cryptocurrency market. Furthermore, capital outflows in the crypto market hit a staggering $55 billion in early August, affecting not just Bitcoin but Ethereum and other altcoins. Consequently, stablecoin liquidity has declined as crypto charts flash red signals.
However, it’s worth noting that the last time such bearish sentiment pervaded the market was in November 2022. During that period, Sam Bankman-Fried’s FTX empire faced a significant setback.
On the flip side, Benjamin Cowen, the CEO and founder of ITC Crypto, offers a more optimistic outlook. According to him, Bitcoin is set to continue its upward momentum in the coming days. Specifically, he predicted that Bitcoin would aim to re-establish the support and resistance zone around the $27.2k mark. Moreover, Bitcoin’s market dominance has recently broken a minor downward trend, reclaiming 50 percent following its recent surge.
Interesting trend by #BTC dominance.
— Benjamin Cowen (@intocryptoverse) September 15, 2023
Each prior breakout had a backtest of the trend line, followed by a big move to new highs. pic.twitter.com/E22NRopjhh
While Bitcoin shows signs of resilience and potential for growth, traders are advised to tread cautiously. With historical data and expert opinions, sentiment analysis paints a complex picture of a market in flux.
