Crypto Daily: BTC sentiment remains negative for the tenth consecutive week

Oct 12, 2022
10:10
2 min reading

Choise.com team

The world’s largest cryptocurrency Bitcoin (BTC) sentiment remains negative for the tenth consecutive week. As the on-chain data provider Santiment notes, the discussion rates for Bitcoin have been on a constant decline while other altcoins are taking up the charge.

As stated in the Santiment report: “The percentage of discussions related to Bitcoin, among top 100 assets, is at just 12.8%. This is the lowest week in 7 months. And for a 10th straight week, the crowd is bearish toward BTC. Both are historically favorable of price bottoms occurring.”

The data provider further added that Bitcoin’s relative price action has become very much boring over the last four months due to the lack of whale presence. The lack of BTC whale participation has also led to lesser volatility for the world’s largest cryptocurrency. Currently, Bitcoin whale transactions have dropped to a two-year low: “BTC transactions valued at $100k+ and $1m+ have fallen to levels last seen in 2020”.

Altcoins take up the charge

Amid the recent market downturn, some altcoins have been really performing well. Ripple’s XRP has been showing some strong upswing over the past few weeks as the company gains some edge over its legal battle with the SEC. However, the XRP price is facing stiff resistance at $0.50 and has failed to sustain above these levels.

Other altcoins like Polygon (MATIC) and Chainlink (LINK) have also shown good price action in recent weeks. In terms of developer activity, Polkadot is leading, Ethereum and Cardano remain among the top five. According to the Santiment report: “Polkadot’s and Kusama’s shared github repository continue to be the most active in regard to notable active development, with 538 submissions recorded per day. Ethereum, Cardano, and Status currently round out the top five.”

BTC bears remain strong

Bitcoin pricesettled below the $19,500 pivot level and the 100 hourly simple moving average. The price even traded below yesterday’s low and tested the $18,850 zone. A low is formed near $18,860 and BTC is now consolidating losses.

On the upside, an immediate resistance is near the $19,200 level. There is also a key bearish trend line forming with resistance near $19,180 on the hourly chart of the BTC/USD pair.

If Bitcoin fails to recover above the $19,200 resistance zone, it could test the support near the $18,850 zone. There is also a risk of a move towards the $17,800 support zone.

Source:BTCUSD on TradingView.com

Technicals

Hourly MACD is gaining pace in the bearish zone

Hourly RSI is now near the 50 level

Support Levels – $18,850, $18,550

Resistance Levels – $19,200, $19,500, $20,000

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