Bitcoin holds above $34k, sell signal is still there
Bitcoin (BTC) gained bullish traction two weeks ago with the high anticipation of the spot ETF approval, but a key indicator still shows high volatility for the asset.
According to data provided by the market intelligence platform Santiment, Bitcoin’s whale activity and social volume dropped significantly over the past week. The plunge comes while the flagship cryptocurrency took a notable dive from the $35,000 mark to almost $33,000 on Oct. 26.
Per Santiment, the number of whale transactions consisting of at least $100,000 worth of BTC declined by 53% over the past week — currently standing at 3,731 unique trades.
Quite similarly, Bitcoin’s social activity also witnessed a significant decline over the past week, marking a 57% plunge.
On the other hand, the total BTC supply on exchanges witnessed a small rise. According to Santiment, there are around 1.12 million Bitcoins on all exchanges at the time of writing. Historically, the supply on exchanges rises when early investors try to withdraw funds at a favorable price or a significant number of new investors purchase an asset on the platforms.
Consequently, Bitcoin’s price-daily active addresses (DAA) divergence shows a sell signal while the market enters the “greed” zone. Per Santiment, the asset’s price DAA divergence currently stands at negative 94.9%.
Bitcoin is up by 0.4% in the past 24 hours and is trading at $34,230 at the time of writing. BTC’s market cap stands at $668 billion with a 53% market dominance. The asset’s 24-hour trading volume has also seen a 38% surge, surpassing the $13 billion mark.
As the bullish trend comes, VanEck advisor Gabor Gurbacs believes that El Salvador could become the “Singapore of the Americas” while high-profile ETF applications await in the United States.
