Key Points
- Bitcoin’s recent dip below $70,000 has triggered mixed trading sentiments.
- Despite the price decline, traders remain focused on the potential impact of the upcoming halving event.
Bitcoin was trading at around $69,000 at press time, with Open Interest figures standing at approximately $36 billion. This comes despite a dip in Bitcoin’s price.
Trading Sentiments
Bitcoin’s recent ascent above $71,000 sparked optimism among traders. However, a subsequent drop below $70,000 has led to mixed sentiments. Analysis of the daily timeframe price chart showed a decline to around $69,217 by the end of the trading session, down from its starting point above $71,000. This decline outweighed the previous day’s gains of over 2.7%.
Despite the price drop, the Relative Strength Index (RSI) line remained almost flat, suggesting that Bitcoin was still in a bullish uptrend, albeit a weak one.
Social Sentiments
The decline in Bitcoin’s price sparked a debate about whether to buy or sell the asset. Social dominance and volume on Santiment indicated a relatively balanced debate. Analysis of social volume showed around 164 mentions of buy sentiment, compared to 125 mentions of sell sentiment.
Furthermore, social dominance revealed that the buy sentiment was around 4.9%, while the sell sentiment was around 3.7%. At the time of writing, “Bitcoin halving” ranked as the second-highest trending word, suggesting that traders remain largely focused on the potential impact of the upcoming halving event, despite the price decline.
An analysis of Bitcoin’s daily active addresses revealed a slight increase over the past four days, with active addresses rising from around 835,000 to over 898,000 between 7 and 9 April. However, the 7-day active addresses chart highlighted a recent decline, suggesting that while a notable number of active wallets exist, many participants may be adopting a wait-and-see approach.
At press time, Bitcoin’s Open Interest had fallen too. Data from Coinglass revealed that Open Interest stood at approximately $36.89 billion, down from $37.84 billion on 9 April. Despite the fall, a considerable amount of capital is still entering the market, indicating that Bitcoin’s short-term price action is unlikely to make a significant impact.
