$30K Way in Bitcoin (BTC)?

Bitcoin (BTC), which has been on the rise since the beginning of March, has reached its highest level since the beginning of June 2022. Bitcoin (BTC) is currently trading close to $30,000, a psychological barrier that many users want to break.

According to Santiment, Bitcoin’s recent rally was supported by strong trading volume, indicating healthy demand and momentum. However, Santiment warned that there are signs of exhaustion and overconfidence that could lead to a correction in the market. Santiment points out that the social volume and social dominance of Bitcoin, an indicator that measures the amount and share of online conversations about BTC, is at a one-year high.

Another indicator that Santiment is tracking is Bitcoin’s stagnant circulation, which shows the number of coins that have not moved for at least five years and are starting to move again. Santiment notes that since mid-March, there have been two increases in this metric between 2,800 and 3,000 BTC each. This may indicate that some long-term holders are feeling nervous about the regulatory pressure on crypto or the legal case against one of the largest crypto exchanges, Binance.

Santiment also observes that wrapped Bitcoin (WBTC) borrowing on Aave, a decentralized lending platform, has increased recently. WBTC is a tokenized version of Bitcoin that runs on Ethereum, allowing users to access decentralized finance (DeFi) applications. Santiment says that most of the WBTC borrowers have probably shorted Bitcoin and believes its price will drop. However, the platform notes that this strategy has backfired in the past as the highest increases in WBTC borrowings coincided with local bottoms for Bitcoin.