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Bitcoin Had A Rough Month: Here Are Some Key Points To Watch

btc 25k

If Bitcoin was accustomed to sudden rises and falls for us, September will be especially violent. It is especially the a symbolic passage under 20,000 dollars that changed the game. Investors no longer have a very positive view of the world’s first crypto. However, does this mean that BTC is finished?

If you’re wondering what’s next for BTC, you’ve come to the right place. In this article, we give you some essential metrics to understand the evolution of Bitcoin. Find out if it’s possible that digital gold could continue its push towards record low prices.

The social dominance of Bitcoin is very negative

If Bitcoin somehow manages to consolidate around $19,000, investors’ hopes will not drop. In financial markets, social dominance can be a very relevant indicator anticipating a possible increase in an asset. This simply corresponds to the analysis of social media interactions about a topic. For assets, social dominance determines whether public opinion is positive or negative about a topic.

In this area, companies such as Santiment are doing well. Brian Quinlivan is the director and he also summarized BTC for this month of September. He says of the general climate:

the world is still in a very fragile state, and traders have little faith in any price rally to come

2022 seems to be the shadow of the huge rise of cryptos in the years 2020 and 2021. This year, there will be high inflation, rising interest rates, an energy crisis and a breathless market. In this context, it is not surprising that the social dominance of BTC is at an all-time low.

But even worse, people are talking about BTC less and less, it is this data that largely governs the enthusiasm of an asset. Criticism, albeit negative, does not necessarily mean that an asset sinks, but a lack of debate around it, yes.

btc social dominance

Collapse of BTC social media mentions – graphic from Santiment

However, the crypto market is full of other promising projects. Don’t give up on your fearful predictions about BTC. You can absolutely start investing smartly in cryptos with the help of our news!

Crypto-assets are a risky investment.

The fall of Bitcoin from a chain perspective

Investors’ diminishing interest can also be measured by looking at data on the blockchain. Overall, we note a activity slowed around BTC. Here are some details that will help you better understand the latter on the blockchain.

Investors no longer deposit BTC

A graph from Glassnode shows us a drop in BTC related activity. For example, the The number of addresses containing 1,000 BTC remained fixed for the last 4 days. This data shows us that crypto growth has stalled and demand is weak.

bitcoin addresses

Number of addresses with 1k balance – Source: Glassnode

These data show us a certain pessimism around of crypto. Investors are no longer funding tokens, because they don’t expect to make profits in the future, even with already cheap crypto. This means that traders are expecting a possible further decline in BTC for the coming days or months!

Bitcoin reserves are being emptied

Not only is the lack of BTC purchases recorded, but also its massive selling. Reserves rose by around 1.86 million tokens for almost a month. The trend appears to be reversing between selling and buying, further indicating to us that BTC’s slide may not be over.

Reserve Bitcoin

Bitcoin reserves according to the site CryptoQuant

Bitcoin shows major resistance at $20,000

To top it off, if Bitcoin sees its value recover, it will still be a major resistance at $20,000. Almost 895,000 addresses hold 470,000 BTC to this level. To discover BTC, a significant bull run will be required to offset a massive token sale of that infamous $20,000.

Rays of hope for BTC?

Despite all these damning data, BTC still has encouraging numbers. For example, the constantly increasing creating new addresses on the network.

new bitcoin addresses

New addresses created from Bitcoin – according to the site Glassnode

The Bitcoin network continues to expand, giving us a dormant mass that could start buying tokens in better times. In other words, the rise of the Bitcoin network could lead to a bull run that offsets the resistance plateau at $20,000. If the network grows enough, we can expect further expansion in the future.

Should you invest in Bitcoin at $19,000?

If the adage tells us to buy low and sell high, the case of Bitcoin is complicated. It is, because it is simply not known if the crypto has reached its floor price. A new economic factor may be coming to push BTC down a bit more. At the moment, social dominance is at an all-time low and most investors are pessimistic about the upcoming rise in the value of Bitcoin.

If you want to invest now, it will be at your own risk. To help you with your investments, go to our recent article showing the best crypto projects at the end of this year 2022.

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