Bitcoin (BTC) is down about 36% this year and is currently trading around $29,000. This is Bitcoin's lowest level since the end of 2020. BTC lost the gains it made in 2021, when its star shone.
Current data gives hints of BTC price action in the medium term. According to the Santiment report, long-term Bitcoin investors have yet to sell due to the recent crash in the market. The data shows that this type of investor used the crash as an opportunity to accumulate. The data indicates that long-term investors are using this bear market to boost their tokens. This trend is observed in most bear markets, given that the drop in prices has made Bitcoin much more attractive.
The percentage of BTC owned by addresses that have held their Bitcoin for a year or more has increased in previous bear markets. The same trend is observed in this bear market. However, this accumulation process was weak compared to the selling pressure experienced by Bitcoin. Selling by institutions and short-term investors is causing the BTC price to drop.
Sentiment towards the crypto market has also dropped to near record levels. The Crypto Fear and Greed Index remained in the “extreme fear” zone for almost May. The sell-off in Bitcoin was also evidenced by the record-breaking transaction volume. Data from blockchain analytics firm Santiment shows that Bitcoin has seen the second-largest total transaction volume since hitting an all-time high in November 2021. The data shows that especially institutions are selling their Bitcoins. Market analysts are also divided and cautious about whether a Bitcoin has reached its floor price.
Bitcoin buyers failed to keep BTC value above $30,000 during the week. Selling from this region causes the $30,000 band to remain as a serious resistance zone. In addition, purchases from the $ 29,000 level ensure that the largest cryptocurrency continues to move in the narrow band.