The king coin’s six-day recovery of around 10% during the festive season, was met with over 8% losses over the last three days. As Bitcoin[1] traded at $46,750 at the time of writing, a high year-end close seemed like a distant dream. Nonetheless, looking back at this volatile year for BTC, some things seem to have changed.
NYE hike plans on a wait
With price testing the lower bounds, the overall retail sentiment seems to have dipped in the past few weeks moving into the end of the year. The social sentiment remaining low is usually a positive sign for an asset and aids steady price growth as people remain disenchanted and in disbelief.
Source: Sanbase
Further, both 7-day and 30-day MVRVs saw a major downfall highlighting BTC being undervalued at the moment. However a short-term reversal in the same sparks some optimism for the asset.
The 365-day MVRV too had fallen in the negative zone and a BTC fall to $40K would be justified in terms of MVRV. However, there was still room for growth.
Source: Sanbase
Additionally, with younger coins being spent in the market, the recent shake-offs seemed to have not affected the older and more experienced hands. In fact, the average age of the BTC being spent is declining.
Source: Will Clemente
Bitcoin’s Network Profit Loss shows some dips and Exchange Inflows show spikes into price drops. This could mean that there are people who are immediately ‘panicking’ about the crash. This further flushes out weak hands as sell-offs take over.
It could also mean that participants are perhaps fixing profits for the year for tax optimization purposes. However, people selling on dips in general present bearishness as they believe the price would go lower in the near future.
Source: Sanbase
