Bitcoin has crossed the dangerous 45k bridge and now many are feeling wary. However, there are still reasons to be afraid.
Keep calm and keep going
Analysis by the co-founders of Glassnode revealed that Bitcoin saw just under $100 million in inflows. In addition, an Uncharted report revealed that the king coin had finally turned its former resistance level of 45k into a support level. That’s good news for bulls.
But 50k might still be a long way off. For now, investors would do well to keep their eyes on the 48k mark.
Last week $193 million inflow in crypto
— (@Negentropic_) Apr 2, 2022
Still, it is best to be cautious as the crypto market is experiencing strong negative sentiments. This, even as US equities recorded an outflow. The Uncharted Report explained†
“We need to remain cautious as the macro environment is fueling crypto investor behavior and sentiment in traditional markets declined. US equities saw the first weekly outflow ($-14 billion) since September 2021, when US fixed income led the money flows.”
Moreover, Ethereum was not Ethereum, but Solana, close behind Bitcoin in influx [SOL], with an inflow of approximately $87 million. One possible takeaway is that investors may opt to bank on alts as several top 20 coins have seen impressive rallies over the past week.
In case of 50k, break glass
Another cause for concern was data from Santiment, with the same revelation that the Bitcoin rate has fallen.
One factor that may explain this decline in activity is a widespread sense of uncertainty and a weighted sentiment of around -2.19 – a figure last seen in early 2020.
However, more experienced traders are likely hoping that the prolonged dip could spark another rally.
Plan B, version 2.0
However, the pseudonymous creator of Bitcoin’s stock-to-flow model, PlanB, is far from done. He shared that BTC’s Relative Strength Index value is rising again. This means that BTC is getting closer to an overbought asset.
— PlanB (@100 trillion USD) Apr 2, 2022
Now some were wondering if the S2F had finally lost the plot, literally speaking. On the contrary, PlanB claimed that there were more deviations in 2011 and 2013 than in March 2022.
— PlanB (@100 trillion USD) Apr 1, 2022
At the time of writing, Bitcoin was trading at $46,383.23 after a valuation of 3.75% over the past seven days.