Bitcoin is on the verge of a bearish turn, according to a leading crypto analytics firm. Santiment says five indicators are flashing warning signs, even though the king crypto is making moves closer to the $30,000 price level.
The trading volume is cooling off, and the indicators are not looking good.
The recent rally has seen decent trading volume at the start, a healthy sign. However, as we inch higher, volume has started to slow down. This could be a sign that the rally is reaching its peak.
Sentiment also says that the Social Volume and Social Dominance indicator is at a high level. This historically indicates the top of a price rally. So, if you’re thinking of investing in this rally, it might be a good time to do so now.
BTC’s Social Volume and Social Dominance are at its highest level in a year, indicating that the crowd is getting somewhat excited. This usually precedes a local top.
According to Santiment, the third bearish indicator is that long-term holders of Bitcoin are starting to become active again.
“Since mid-March, we saw two such spikes, between 2,800 and 3,000 BTC that are pretty long-term (five years) being activated. Could it be due to the crypto crackdown or CTFC [Commodity Futures Trading Commission] investigations? We’re not sure, but it’s definitely something to keep an eye on.”
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