• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Sensei Inu Logo Sensei Inu Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
      • Casino utan svensk licens
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Best crypto casino
Breaking News: BREAKING: Three Arrows Capital Co-Founder Receives 4-Month Jail Sentence In Singapore
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
      • Casino utan svensk licens
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Best crypto casino
Bitcoinist.com
No Result
View All Result
Breaking News: BREAKING: Three Arrows Capital Co-Founder Receives 4-Month Jail Sentence In Singapore
bitcoin, cryptocurrency, btcusd, xbtusd, btcusdt, crypto

Santiment Predicts More Pain for Bitcoin as Active Addresses Plunge

Yashu Gola by Yashu Gola
3 years ago
in Bitcoin
0

Santiment cautioned Bitcoin bulls about the cryptocurrency’s downside prospects in its latest on-chain analysis.

The crypto-focused sentimental analysis platform highlighted a steep decline in the number of daily active addresses (DAA) on the Bitcoin network. The data reflected that there are now fewer wallets that send or receive Bitcoin on a day-to-day basis. Santiment asserts that DAA correlates strongly with the asset’s price action.

“For example, throughout Q1 of 2019, the DAA were steadily growing way before the market started to recover,” the portal wrote in DAA’s introductary note. “Same holds true for July 2019, when a decline in DAA preceded a decline in price.”

bitcoin, cryptocurrency, btcusd, xbtusd, btcusdt, crypto, gold
Bitcoin DAA and Price Divergence chart from Santiment hints a bearish correction

The pattern hinted at repeating in August 2020, it noted. The DAA readings returned two ten percent-long red bars – like the ones seen before the March 2020 crash. They prompted Santiment to expect a fractal echo in the coming sessions, pointing to declines in the Bitcoin market.

“This is a pretty big cautionary indicator that if DAA doesn’t improve soon, a medium to large pullback can take place by the end of August,” the portal predicted.

Bitcoin Pullback

Santiment’s analysis came right after Bitcoin (Ticker: BTCUSD) plunged by more than 8 percent from its local high above $12,000. An absence of adequate buying sentiment near the said level led daytraders to sell their holdings. The correction also took place to neutralize Bitcoin’s excessively overbought Relative Strength Indicator.

bitcoin, cryptocurrency, btcusd, xbtusd, btcusdt, crypto
Bitcoin chart from TradingView.com showing BTC/USD neutralizing its overbought RSI.

BTCUSD spotted support at its 2o-daily exponential moving average (the green wave). It prompted traders to expect a renewed buying sentiment in the market, with one analyst expecting Bitcoin to head further lower before a full retrace to the upside. He said:

“When you get a bunch of wicks tightly together on the [lower timeframe], it’s an indicator of demand for an asset at current price. It means the asset will very likely go up on the LTF from there.”

The analyst was referring to two back-to-back bounce backs from Bitcoin’s wicks, their tails near $11,000. That showed a reasonable buying demand for the cryptocurrency near the said level.

NVT

Santiment also favored a bullish scenario despite its concerns over the falling DAAs. Only this time, the portal referred to Bitcoin’s NVT.

NVT is a ratio of Bitcoin’s Network Value to Transaction. It serves as a barometer to measure the relationship between Bitcoin’s overall network valuation and the worth of transactions that pass through it. A higher NVT shows growth, indicating that investors expect a higher return investment. A lower one, on the other hand, expresses weakness.

bitcoin, cryptocurrency, btcusd, xbtusd, btcusdt, crypto
Bitcoin price-NVT comparison, as highlighted on Santiment

As of late, NVT is trending in neutral territory, neither rising nor falling by exponential margins. It is a sign that traders are still in a wait-and-watch mode regarding Bitcoin’s next price moves.

“Unique tokens being moved on Bitcoin’s network have been shuffling back and forth in a neutral state for much of August,” wrote Santiment. “This is actually a welcome sign, as both June and July showed that there was a notable deficit in its NVT that foreshadowed that this recent $12k level was looking a bit too high.”

The portal recommended traders to keep an eye on NVT to predict the next Bitcoin price direction in August.

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.

Yashu Gola

Yashu Gola

Globetrotter Yashu Gola has been working as a financial/crypto market journalist since 2013. He is an information technology graduate, a cryptography junkie, a filmmaking enthusiast, and an avid reader of Jon Erickson, Agatha Christie, JK Rowling, and Isaac Asimov.

Related Posts

Bitcoin price $30,000

Bitcoin Price Sets Sights On $30,000 As Holder Metric Hits New All-Time High

3 hours ago
Bitcoin

Bitcoin Long-Term Metrics Point To A Different Scenario Than 2019 Fakeout: Top Analyst

5 hours ago
Bitcoin

Bitcoin Hash Rate: Public Miners Account For Just 28% – Is Decentralization In Jeopardy?

8 hours ago
Bitcoin

Bitcoin Recent Hiccup: Understanding The Invalid Block 

2 days ago
Bitcoin

Could Bitcoin Be On The Verge Of New ATH Rally? Analyst Identifies These Conditions

3 days ago
Bitcoin

Bitcoin Miners On The Defensive: Market Uncertainty Spurs Revenue Diversification – Analyst

4 days ago
Please login to join discussion

Premium Partners

Premium Casino Partners

Play Finance

Top Casinos

Trust Dice
Trust Dice
Punt Casino
Punt Casino
mBit
mBit

Press Releases

  • Meta Force and Lado Okhotnikov Presented the Results of...

    7 hours ago
  • Bitcoin (BTC) and Litecoin (LTC) Ascending – Is it a...

    11 hours ago
  • Ethereum (ETH) and Ripple (XRP) Facing Key Levels –...

    11 hours ago
  • While Stellar And Avalanche Falter, Bitcoin Spark Heading...

    14 hours ago
  • Crypto Sports Betting Just Got A Lot Better –...

    14 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
© 2023 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • Gambling
      • Bitcoin Casinos
      • Real Money Slots
      • Online Casino Real Money
      • Casino utan svensk licens
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Best crypto casino

© 2023 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.