Author:
The cryptocurrency market endured massive volatility this week. Amidst geopolitical instability, this price action triggered billions in liquidation and left many wondering if Bitcoin could be used as a hedge against chaos. However, certain cohorts of Bitcoin holders remained unfazed.
This is evident by the fact that Bitcoin appears to be entering an accumulation phase as withdrawals from exchanges surged to levels not seen since January 2023.
Bitcoin Investors Prepare for Surge
The ongoing accumulation of BTC suggested a significant uptick in investor activity, coinciding with a recent cooldown in the market following a 10% price drop last week. The emergence of such a trend also points to the possibility of price hikes in the near future.
With the highly anticipated halving scheduled for April 20, CryptoQuant analysts speculate that the increased withdrawals may be indicative of preemptive steps taken by investors seeking to capitalize on potential gains.
In the meantime, a decrease in open interest on derivatives exchanges signified a shift away from leveraged trading, potentially fostering market stabilization.
Another analysis of the Short-Term Holder Spent Output Profit Ratio (STH SOPR) support zone highlighted a promising buying opportunity, as historically, such conditions precede upward price movements, indicating the potential for Bitcoin’s value to surge soon.
Markets Defy Crowd Expectations After Panic Selling
Santiment’s analysis reveals a prevailing negative sentiment among traders following Bitcoin’s descent to $61.5K and Ethereum’s drop to $2,890 over the weekend. The ratio of bullish to bearish comments regarding both cryptocurrencies reflects this downturn, indicating a surge in fear, uncertainty, and doubt (FUD) among investors.
Interestingly, despite initial panic selling, markets are now rebounding in a direction contrary to the crowd’s expectations.
The crypto analytic firm also suggests that this trend of market sentiment going against the crowd’s anticipation may continue until the fervor and hype surrounding the upcoming halving event start to dominate social media conversations once again, similar to the buzz observed one to two weeks prior.
LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!
