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Bitcoin Might Be on Reversal Edge According to This Indicator

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Tue, 06/21/2022 - 15:36
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Tomiwabold Olajide
Bitcoin (BTC) extended its winning streak to a second day, holding over the $21,000 mark
Bitcoin Might Be on Reversal Edge According to This Indicator
Cover image via stock.adobe.com

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According to on-chain analytics firm Santiment, Bitcoin saw the bulk of weekend discussions on the market centered on it as its price plunged beneath the $18,000 mark. "We often see major price reversals correlate precisely with high social volume rates, and BTC has jumped +15.8% since," Santiment wrote in a note alongside the chart provided.

Cryptoanalyst Ali Martinez indicated in a recent tweet that the BTC Long/Short Ratio has declined to near 1.05 on Binance futures. He noted that nearly 48.87% of all traders with an open position in Bitcoin are net short. "This is good news as you want the crowd to be bearish when BTC rebounds," the analyst noted.

Bitcoin podcaster Max Keiser again shared his earlier predictions that Bitcoin might soar to the $220,000 level this year.

Bitcoin price action

On Tuesday, Bitcoin (BTC) extended its winning streak to a second day, holding over the $21,000 mark in early signs of recovery. The price gains in Bitcoin led to recovery among crypto majors.

In the past 24 hours, Ethereum (ETH) was up nearly 5% at $1,167, while Shiba Inu's SHIB jumped nearly 30%. A general rebound was seen generally for Defi and lending tokens. Aave (AAVE), Waves (WAVES) and embattled Celsius (CEL) posted impressive gains of 25%, 33% and 55%, respectively. The total cryptocurrency market capitalization has risen by 5% to $941 billion, as per CoinMarketCap.

Bitcoin prices fell to $17,599 on Saturday, marking the first time in the asset's history that prices dipped below prior all-time highs. In a record-breaking 12th consecutive daily loss, Bitcoin plunged through several highly watched price levels to the lowest since late December 2020. The general market dip, according to analysts, was caused by deepening stress inside the crypto industry against a backdrop of monetary tightening.

The leading cryptocurrency has subsequently regained some of its losses and was trading at $21,442 at the time of publication, up roughly 5%.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.