Santiment Expects Capitulation For Bitcoin, As BTC Price Drops Below $33k
Yet again the whole cryptocurrency market is concealed in red as the world’s first cryptocurrency by market cap, Bitcoin Price has failed to hold on to the price above the critical support level of $35,000 level.
This drastic fall dragged the flagship currency towards the $33,000 level as Bitcoin at the moment is changing hands at $33,503 with a plunge of 3.29% over the last 24hrs.
Also when the last three days’ data is considered the global crypto market has lost around $250 billion in investors’ wealth.
Analysts’ Take On Bitcoin Crash
According to a Twitter handle, Blockchain Backer explains that as Bitcoin falls below the 100-week moving average, this move will see more sell-offs in the coming days.
Bitcoin closes the week below the 100-week moving average.Both previous times led to capitulation to 200-week moving average in 2014 and 2018.Today's chart has many differences from those two times, and those two times were very similar to each other.Big dive in tomorrow! — Blockchain Backer (@BCBacker) May 9, 2022
On the other hand, Santiment, and on-chain data provider is of the opinion that the crypto market crash has affected the trader’s sentiment that is leaning towards a negative level once again.
The data claims that as the king currency has now retraced back towards $33.9k, the trader’s sentiment has fallen to six month low.
Hence, in this scenario, the Santiment foresees a capitulation sign because if weak hands move away, then a bounce could be seen.
When looking at Bitcoin’s year-to-date data, the currency has crashed by 30%. Also, the Bitcoin fear and greed index has hit an extreme fear level as the firstborn currency has witnessed around a $6,000 loss in just a few weeks.
Altcoins Follow Bitcoin
Ethereum, the second-largest currency that closely follows Bitcoin, has seen a downfall below $2,500. However, at the press time, Ethereum has slightly increased trading at $2,459 with a decrease of 4.08% in the last 24hrs.
As the altcoin lead, Ethereum saw a fall, and so did the other altcoins like XRP, Solana, Terra (LUNA), and Dogecoin among others.Source