- At the time of writing, Bitcoin was trading around $69,000
- Open Interest numbers were around $36 billion, despite BTC’s price drop
After several days of upward trends, Bitcoin’s recent surge above $71,000 sparked optimism among certain traders. However, the subsequent drop below $70,000 left mixed feelings, with buying and selling sentiment both showing similar numbers.
A weak bull trend?
Bitcoin registered a significant setback on April 9, deviating from the expected price trend with a drop of almost 3% on the charts. Analysis of the daily price chart revealed a drop to around $69,217 at the end of the trading session, down from the starting point above $71,000.
This decline outweighed the previous day’s gain of more than 2.7%.
Source: TradingView
At the time of writing, this downward trend continued, albeit marginally. The Relative Strength Index (RSI) line also appeared nearly flat, hovering slightly above the neutral line. This position suggested that Bitcoin was still in a bullish uptrend, but it was weak.
Buy or sell?
The aforementioned drop in the price of Bitcoin has sparked major debate over whether to buy or sell the asset. In fact, social dominance and volume continue Santiment indicated a relatively balanced debate between these positions. Think about this: A social volume analysis showed about 164 mentions of buying sentiment, compared to 125 mentions of selling sentiment.
Furthermore, social dominance research found that buying sentiment was around 4.9%, while selling sentiment was around 3.7%. Additionally, “Bitcoin halving” was the second highest trending word at the time of writing. These figures suggest that, despite the price drop, traders remain largely focused on the potential impact of the upcoming halving.
Minimal activity on active addresses
An analysis of Bitcoin’s daily active addresses also revealed a slight increase over the past four days, with the same hovering around the 800,000 threshold. Between April 7 and 8, the number of active addresses rose from approximately 835,000 to over 892,000, with a further increase to over 898,000 on April 9.
Source: Santiment
On the contrary, the seven-day active addresses graph highlighted a recent decline. From April 7 to 10, the number of active addresses fell from more than 4.9 million to approximately 4.7 million. These statistics suggest that while there are a notable number of active wallets, many participants may be taking a wait-and-see approach.
– Read Bitcoin (BTC) price prediction 2024-25
At the time of writing, Bitcoin Open Interest had also fallen. Dates of Mint glass revealed that Open Interest was approximately $36.89 billion, down from $37.84 billion on April 9. What can be deduced from this? Despite figures for the same decline, a significant amount of capital is still entering the market. Bitcoin’s price action is also unlikely to make a dent here in the short term.