Cryptocurrency is going through a very volatile period, as its key indicators are signaling a bearish trend, according to the analytics firm Santiment. Although the price of Bitcoin is inching close to the $30,000 mark, Santiment believes that there are five indicators that might portend a downturn.

To start, the trading volume has lowered and a divergence of the price and volume is observed, which means that the price action is on the brink of getting exhausted. Additionally, due to the crowd's excitement and activity, the Social Volume and Social Dominance indicator have reached its highest level in a year and it is considered as a likely sign for a local top.

Moreover, Santiment also noted that long-term holders of Bitcoin are starting to become active as well, although it is still uncertain whether this trend is caused by the cryptocrackdown or the legal battle between Binance and the Commodity Futures Trading Commission (CTFC). In regards to the Wrapped Bitcoin (WBTC) borrowing on the lending and borrowing DeFi protocol Aave (AAVE), the analytics firm has observed cautious shorting.

Finally, Santiment mentioned that Bitcoin's market-value-to-realized-value (MVRV) ratio is in a similar situation seen in 2019, thus it might soon be set to a sharp spike that might mark a local top and, subsequently, a detrimental bleed like the one seen in 2019. Then again, given the novelty of the current environment, it is still to be seen what lies in the future for Bitcoin.



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