The End Might Not be Near Based on Recent On-Chain Analytics

Everyone’s hoping that Bitcoin’s price slide ends soon. However, that doesn’t seem to be the case. The price has dropped last week and even further down the drain this week. These aren’t huge drops, but they are just enough to shake up things in a negative way. Bitcoin investors and enthusiasts are waiting for positive news every week, but that hasn’t been the case recently.

With Fed rate hikes and piling negative finance news, the end of the price slides might not be near. That’s what recent on-chain analytics suggests, but it might be a case of the night being the darkest before dawn.

Absence of a Positive Catalyst

The simplest and most reasonable explanation for the negative Bitcoin price slides is the absence of a positive catalyst. Early on Tuesday, Bitcoin’s price slid down 1%, while some altcoins such as Solana, XLM, and MATIC dropped down 4%. The broad CoinDesk market is also down by almost 2%. Ethereum was underperforming on Tuesday too, having dropped 2.2%. There were some slight greens on the market early today, but not enough too make a big difference.

Overall, the crypto market is in a slump and there doesn’t seem to be an improvement in sight. Recent US economic data have taken down any chance of the Fed making a sharp turn in its monetary policies. Crypto bulls are looking for something to hold on too, but no chain metrics show positive news. All hopes are pinned on the upcoming spot Bitcoin ETF, which can shake things up in a positive way.

So far, there have been several applications for a Bitcoin spot ETF send to the SEC. However, there’s yet a decision to be made, with no guarantee we’ll see one this year. Everyone thought that US will have the first ETF, but the initial one was actually issued in Europe just weeks ago. In the short run, traders hope that there will be a positive ruling in Grayscale’s lawsuit versus the SEC over the agency’s denial of Grayscale’s attempt to convert GBTC to a Bitcoin spot ETF.

No Wishful Thinking

Some traders have been seeing the most recent events as a chance to buy the dip. It rings true for some, but others are saying that the price will slide further, allowing you to buy an even better dip. We know that El Salvador’s tech-savvy president will surely do so, but investors might stay put for a while.

Pro traders use sophisticated instruments such as futures and options to make returns at crypto exchanges. Wishful thinking seems to have died down, and there’s not much positive light on the horizon. It seems that the crypto market is in a limbo right now, with a focus on dropping prices rather than hikes. We’re not that sure you should buy the dip right now. Bitcoin has kind of settled into the $26K groove right now, and things may get uglier before they get better.

It’s better to stay put for the moment before making any moves.

Share this

Share This