After jumping over $40,000 and just brushing $45,000, Bitcoin fell back below $40,000. On top of that, the king’s coin was reviewing the prices it adopted at the end of February. Even at press time, Bitcoin was painting a red candle. Rather than giving up in frustration, however, it’s time to see what the metrics have to say.
Alright, I’ll bite. Bitcoin, what good is it?
The bigger question: Are investors buying or selling right now? Data from Santiment revealed that BTC was exiting crypto exchanges, likely fueled by prices near a six-month low. Additionally, 21 of the past 26 weeks have seen Bitcoin outflows dominate the market.
What is curious, however, is that Santiment has suggested that spikes in the outflows could indicate an upcoming price rise. While the recent outflows of 14,700 BTC from the exchanges seem like a lot, it’s not much compared to the outflows at the end of January 2022, when over 100,000 BTC left the exchanges.
Sure enough, that was followed by a rally.
📊 #Bitcoins continues to see coins exit exchanges as prices near a 6-month low. Interestingly, 21 of the past 26 weeks have seen $BTC moving more out of exchanges than into exchanges. Look for major outflow spikes as indicators of rising price. https://t.co/Jl0GZqfBlF pic.twitter.com/6Btqp4F7Vl
— Santiment (@santimentfeed) March 7, 2022
At press time, Bitcoin was still in the red as it changed hands at $38,092.85. The flagship coin fell 0.50% in the past 24 hours and 0.76% in the past week. The drop below the psychological price of $40,000 certainly hit investors where it hurt, as the Bitcoin Fear and Greed Index recorded a value of 23, indicating extreme fear.
Meanwhile, data from Glassnode puts Bitcoin at a “critical level”. This analysis revealed that the relative strength index – indicating whether an asset is overbought or oversold – places Bitcoin in the latter territory. Moreover, if Bitcoin does not break above $40,000 soon, the centerpiece could fall to a new support level between $34,000 and $36,000.
This is worrisome news for bulls who have no intention of buying the dip and instead want to run away.
#Bitcoins is at a critical level. The RSI is oversold and tends to rise. If the price does not exceed $40,000, we go down to the support.
Support: $34 – $36,000
Resistance: $43 to $45,000
See for yourself in the latest Unchartedhttps://t.co/6eOWyypDgk pic.twitter.com/Pun8KCLjeP
— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) March 5, 2022
Such flourishing data!
Bloomberg Intelligence’s Crypto Outlook for March 2022 took a look at Bitcoin at a crucial time in global history. With the Russian-Ukrainian war on one side and the COVID-19 pandemic on the other, analysts are concerned that Bitcoin is starting to show correlation with tech stocks, the S&P500, and even the Nasdaq.
However, Bloomberg research suggests that despite Bitcoin’s high volatility, it was the Nasdaq 100 stock index that fell the hardest in 2022.
Bloomberg Intelligence reported,
“With year-to-date losses less than half those of the Nasdaq 100, Bitcoin could be maturing towards global digital collateral. The initial pivot levels are where Bitcoin and the stock index closed the week before Russia invaded Ukraine: $40,000 and 14,000.”