Over the past week, Bitcoin has recorded a notable drop in prices of around 9%. Lately, the bulls in the coin market have disappeared, and, given its valuation of $ 52.3 thousand at the time of writing, most traders have a question whether BTC will return to levels close to 62 thousand over the next weeks.
If Bitcoin’s status as a long-term asset remains undeniable, what can be said about the near-term performance, and will the market show a further decline in price before a recovery?
Dataprovided by Santiment show how quickly the arguments for bullish divergence are fading away. The low circulation ratio of tokens, which was noted after bitcoin fell below 52 thousand dollars, indicated a bearish outlook for the coin in the near future.
For the first time since September 2020, #Bitcoin‘s level of token circulation is not justifying a #bullish divergence based on $ BTC‘s market cap, according to our popular NVT Sansheets model.
Copy it here and plug in your Sanbase PRO API to track. https://t.co/cKYNwbfzJ8 pic.twitter.com/DAHNS18qcp
– Santiment (@santimentfeed) March 25, 2021
According to the information provided, the last time this token circulation ratio was observed in September 2020, when the price of the cryptocurrency experienced a long period of sideways movement.
At the same time, there are signs that investors are becoming more confident in the imminent pullback. Price expectations in April are quite high, and many investors are confident that the $ 80,000 mark may be reached by then.
There are a large number of call options expiring on April 31st that suggest that the price will hit the $ 80K mark, giving Bitcoin a little over a month not only to recover, but also to establish a new ATH with a fairly large margin.
Despite all the difficulties in predicting the next vector of market movement, the BTC recovery cannot be discounted. Santiment points out that over the past 24 hours, 1.24 million active Bitcoin addresses coincided with a monthly high, so it can be argued that this fundamental indicator of the market speaks of a rapid recovery.
An analysis of the volatility level of the coin over the past 6 months also shows that significant price changes can be expected from Bitcoin. True, in the near future, the period of sideways movement can seriously slow down the coin’s aspiration for growth.
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