- There has been a growth in new demand for BTC over the past week
- However, this has dropped over the past twelve hours
The number of Bitcoins [BTC] non-zero wallets have risen despite recent declines in the price of the coin Santiments facts.
According to the on-chain data provider, 370,000 new wallets containing at least one BTC have been created in the past six days. The number of BTC holders now stands at 52.94 million, up 0.1% since the beginning of the year.
Source: Santiment
At the time of writing, BTC was trading at $67,734. Due to the negativity in traditional markets and geopolitical uncertainty, the cryptocurrency fell down the charts and took the rest of the market down with it. The price has fallen by more than 5% in the past 24 hours CoinMarketCaps facts.
More decline in the short term?
A review of the coin’s performance on the daily chart indicated the possibility of a further price decline in the near term. The observed key indicators confirmed that the bearish activity significantly exceeded the bullish trends in the BTC market. If the crypto market depreciates even further, BTC could also reach $65,000.
For example, the Aroon Down Line (blue) had a value of 92.86% at the time of writing. An asset’s Aroon indicator measures trend strength and identifies potential reversal points in price movement. When the Aroon Down line is close to 100, as in this case, it indicates that the downtrend is strong and that the most recent low was reached relatively recently.
According to data from CoinMarketCap, BTC last traded around the $67,000 zone a month ago.
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Confirming the bearish trend in the coin market, the MACD crossed below its signal line during the intraday trading session on April 12.
When an asset’s MACD line intersects its signal line in this way, it indicates that the short-term trend is weakening against the longer-term trend. It is known to precede a downward price trend. Traders often interpret this as a sign to consider selling their holdings or taking short positions.
As expected, as the price of Bitcoin has fallen as much as it has, overall demand for the coin has also fallen. The same was underlined by the findings of the Relative Strength Index and the Money Flow Index, with the latter all on the verge of crossing the midline at the time of writing – a very bearish sign.
Source: TradingView
The values of these indicators show that market participants currently prefer BTC distribution over accumulation. Ergo, it’s still too early to say whether the cryptocurrency will now see a sustained uptrend even as the halving approaches.