Bitcoin price surpassed $ 40,000 for a while on May 26 for the first time in five days. Reaching up to $ 40,855, BTC then showed a slight decrease.
While analysts like Cheds and Korous AK think that BTC/USD will reach $42,000 in the short term, they advise caution until the spot market shows a definite bullish trend.
In particular, Cheds thinks that the uptrend will be certain if Bitcoin surpasses its 200-day simple moving average, which sits around $40,600.
— Cheds (@BigCheds) May 26, 2021
Moreover, at least three more on-chain measures show that Bitcoin bottomed out on May 19, when it slumped to $30,000.
The number of people depositing Bitcoin on exchanges is decreasing
On-chain analytics platform Glassnode, In his post of May 26 He explained that the total number of addresses that send Bitcoin to crypto exchanges decreased in the seven-day time frame.
The metric “Number of addresses investing in exchanges” reflects the number of addresses that are sending money to exchanges. The metric reveals a decrease in the number of new Bitcoin investors sending BTC to exchanges.
New investors tend to be more emotionally responsive to high price fluctuations. However, this indicator from Glassnode shows a decrease in the number of Bitcoin depositors on exchanges and signals that there will be a decrease in selling pressure.
NVT gives turn signals
On the other hand, Bitcoin’s seven-day average network value / transaction ratio (NVT) fell to the lowest in the last 14 months, according to Glassnode data.
Bitcoin price reacted positively to NVT’s drop to 500 on the hourly chart. The indicator signals an upward turn in the Bitcoin market.
The number of addresses that accumulate is increasing
Another metric from Glassnode shows that the recent correction in Bitcoin price has not had much of an impact on investors’ long-term sentiment. The “number of addresses accumulating” measure broke a record with BTC/USD falling to $30,000 on May 19 and rose to 545,000.
— Bitcoin Archive (@BTC_Archive) May 26, 2021
Glassnode defines savings addresses as addresses that receive BTC with at least two transactions and never spend. The analytics resource considers these addresses to be long-term accumulators.
Increase in accumulation addresses during BTC price crash reveals long-term strategies reduce selling pressure