The cryptosphere is shrouded in darkness as the inflation rate in the US soars to 7.9%. In addition, the fear that the Fed meeting is on the horizon, with an increase in interest rates, haunts the community. The market capitalization of the industry is currently at $1.86 trillion, which has seen a marginal difference of 0.1% on the day.
On the contrary, the crypto star Bitcoin has been navigating turbulent scenarios, which is evident in the price projections. Concerns revolving around PoW chains in the executive order has been the latest participant in trouble. As people watch an increase in whale transfers. In the meantime, the proponent clarifies the correlation between the number of unique transactions and social volumes.
Are these signs hinting at the call of bears?
TO proponent cites that, the number of daily unique BTC transactions for 30D, correlates with weighted sentiments. When the social volume is high, the amount of BTC in circulation also increases. Which can be interpreted as a sales opportunity. The number of BTC in circulation has decreased since January 2021, which coincides with the lowest miner position index.
Successively, the proponent cites that the opportunity are areas, where the volume of sentiment decreases and the circulating BTC settles. He believes we are near the bottom but we will need future markets to cool down. And that he is waiting for a deleveraging event and more liquidations.
Consequently, Bitcoin’s estimated leverage ratio has been on a southerly journey for a while. And funding rates have been positive. That said, although short positions are risky, we cannot rule out the possibility. In contrast, according to Lunar Crush, social volume is down 13.6%, social engagement is -13.4%. Social Dominance is -23.8% and Bullish Sentiment is -12.8%.
According to the sources, in the last few hours, some big investors borrowed 1,500 BTC from Bitfinex for short positions. Currently, a total of 3,063 BTC has been lent, of which the majority of the positions are non-hedged. However, if the short positions turn out to be true, we can expect the price of BTC to head towards $35,000.
Are the whales up to something big?
Learning from Whale Alert, 9,867 BTC transfers were seen from Coinbase to an unknown wallet. Lark Davis says that three similar transactions have been seen on Coinbase, a couple of hours ago. And over a billion in BTC moved off exchanges.
The gigantic movement of BTC has sparked curiosity among the masses of the crypto fraternity. Who now reflects on the reasons for the transfers? The move could be internal transfers or it could be a major player in the business.
BTC price at press time is changing hands at $39,073.94, with gains of -0.6%. While the market capitalization hovers around the numbers of $741,670,981,903, the trading volume throughout the day is $23,919,717,332. BTC price has been swinging in the 24-hour band width from the lows of $38,347.07 to the highs of $39,721.07.
In short, we cannot completely rule out the possibility of another accident. Which can push the price of BTC to levels around $35,000 or so. With that being said, Bitcoin moving well above its 200D MA is what investors and traders are interested in. As would contradict the presence of bears.
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This post Bitcoin (BTC) price is about to drop to $35,000!
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