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Bitcoin (BTC) circulates around $ 35,000 at the start of the week, after a fresh fall panicked weak hands and prompted a whale feast. Once he reached $ 30,000 as part of the “capitulation bottom” event, after bouncing on $ 42,000, many thought the worst was Bitcoin behind. However, the weekend showed that they were wrong.
From weak hands to strong ones
Coins that moved at higher prices near historic highs of $ 64,500 again moved at much lower prices during May. It seems that their goal, whether through stock exchanges or otherwise, was whales or wallets with a small sales history.
This phenomenon was noticed by PlanB, the creator of Bitcoin price models according to the ratio of shares and flows. He claims that they are making maximum use of this whale now. Many small investors sold in May ~ 1M BTC for 30-35 thousand USD. But BTC bought in April for 55-60 thousand USD, which is a staggering loss of ~ 20 billion dollars.
Record fear
Given this fact, probably no one will be surprised that the overall mood in the market with kryptoměnami, judged by factors that involve all participants, is very cautious. On Monday, the Fear & Greed index is just 10/100, the lowest value in more than a year and even lower than during the test of 30,000 USD.
Fear & Greed, a cryptographic equivalent of the same indicator used for the wider economy, uses a basket of factors to determine overall market sentiment over time. According to its consequences, it is possible to decide whether the market is oversold at a given level or, conversely, awaiting correction.
Record monthly volatility for Bitcoin
The BTC / USD exchange rate is around USD 36,600, which is 1.5% more than on Sunday, but 20% less than a week ago. Traders’ patience is being tested. The initial episode of $ 30,000 bounced back to $ 42,000, the site of a February all-time high that didn’t last long.
Instead, Bitcoin after panicking in the mainstream media over comments from China on cryptocurrency mining and trading plunged back into the $ 30,000 corridor. These levels have persisted as mainstream consumers are increasingly fed by the alleged risk factors produced by mainstream media.
Stock-to-flow is maintained
Few long-term indicators provide such a reassuring view of Bitcoin as a stock-to-flow. During this month’s volatility, and in fact during all periods of volatile price movements, it has remained a stock-to-flow resource for those looking for proof that everything is “as usual” for Bitcoin.
As its creator has emphasized in recent days, PlanB, this time is no different. Even its correction of more than 50% from historical highs did not cause Bitcoin to break stock-to-flow forecasts. BTC / USD basically has room to move around 50% around the all-time high in both directions and still meet expectations.
The mining industry is facing a big shock
The old adage “price follows hash rate” may need some extra time to prove itself. This week, the foundations of the bitcoin network are still looking for meaning in recent events, and their impact on miners seems to be greater than originally thought.
According to data from various sources it is hash rate Bitcoin is currently 136.7 EH / s, which is approximately 30 EH / s below historical highs. According to other estimates, the hash rate is more than 10 EH / s higher, but accurate data cannot be achieved in the end.
In the meantime, another automatic reset of Bitcoin’s difficulty, which is due to take place in six days, will open mining to greater potential hashing power, which will motivate miners to get involved. This may be very necessary, because in recent days there has been talk of miners selling BTC in bulk.
Conclusion
It is interesting to note that part of the fear is caused by news from the world where Bitcoinu started talking recently. It is definitely necessary to keep calm and look for other hints that everything is still in relative order.
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