Bitcoin (BTC), the leading crypto by value, might make its holders joyous in the upcoming days, according to a blockchain analytic site, Santiment. It stated that the trading session close of last weekend noted an upsurge in Bitcoin interest on several social platforms.
Santiment added that Bitcoin had dominated more than 26% of debates among the leading 100 digital coins since mid-June. It trusts that the increase in leading crypto’s weighted social sentiment last weekend indicated that a massive FUD level lingered within the Bitcoin market.
Moreover, the analytic platform believes this precipitates a surge in the token’s price.
Not That Quick
While the connection between an upsurge in the token’s social activity and the corresponding price growth might not be clear, Bitcoin’s action on its price charts indicated that the latest increase in the crypto’s social activity isn’t a guarantee of impending price upswings.
First and foremost, Coinmarketcap data showed Bitcoin trading below $20K amid extended bearishness. Moreover, trading volume noted a massive increase within the previous day, welcoming a Down Volume case.
Down Volume emerges when the asset price plummets while trading volume soars. That indicated a bearish market. Thus, Bitcoin sellers have dominated the past session.
Bitcoin 24Hr Timeframe
Assessing the asset’s movement on its daily chart affirmed this state. While publishing this blog, BTC’s MFI (Money Flow Index) neared the 22.18 oversold region. Furthermore, the MFI had endured consistent declines since breaching the neutral-50 on September 15.
The RSI (Relative Strength Index) also maintained freefalls since September 13, hovering near 39.90 at this writing. Steady declines in these crucial indicators suggest a fading buying pressure.
Moreover, the Moving Average Convergence Divergence’s press time position supported the narrative that sellers dominated the Bitcoin market.
The red histograms displayed a downside intersection between the trend line and the MACD line on September 18, suggesting the start of a bear cycle. Finally, Bitcoin’s DMI (Directional Movement Index) indicated seller supremacy in BTC’s daily chart.
While publishing this post, seller power at 24.36 was well beyond buyers’ strength at 10.74. That has been the situation since September 14.