Less than 24 hours ago, Bitcoin’s price broke above the critical $48k barrier. While many from the community believe that the path to new highs is fairly clear, it should be noted that BTC has quite a few resistance levels[1] to break before the door to its March-April levels are re-opened.
Apart from the immediate barriers on the price chart, there is another major factor that might end up hindering the process. If the trend doesn’t reverse itself, things might end up going downhill for Bitcoin.
Absence of Momentum?
Bitcoin’s price has been trying to rally since 20 July. Alas, at times, the market has been void of any momentum. Even though ‘Bitcoiners’ seem to be excited about the inevitable rally[2], it should be noted that the king coin’s social dominance has drastically dropped over the last three weeks.
A fall in social sentiment usually coincides with a weakening rally. Towards the end of July, for instance, close to 30% of crypto-related chatter on social media platforms was dedicated towards Bitcoin. The same had, however, fallen down to just 19.5% at press time.
Source: Santiment
Bitcoin’s trading volumes too, for that matter, have not seen any upsurge. The current levels ($30-$40 billion range) are less than half of what the Bitcoin market noted during the initial few months of the year.
This additionally points to the fact that big market players have been triggering the surge of late. On 15 August, when Bitcoin’s price was well below $48k, the number of whale transactions had a value[3] of 9298. The same, at the time of writing, stood at 14,043.
Source: Santiment
Well, it’d be fair to state that Bitcoin’s price bounceback has not really been that organic this time. Thus, at this
