Bitcoin’s Slowdown At $30,000 Only Temporary, Here’s Why

Best Owie

1 year ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

After seeing an explosive start to the week and breaking above $30,000 for the first time in over nine months, Bitcoin has begun to cool out price-wise. However, this cooldown that has dragged its price below $30,000 once more could only end up being a short stop as indicators point to more bullish movements to come.

Bitcoin Investors Are Still Accumulating

Despite the drawdown in price, it has not deterred Bitcoin investors from filling up their bags. A notable example of this was a large BTC transaction that was recorded on Tuesday. The transaction carried a total of 23,500 BTC worth over $710 million to a single receiver, making it the fourth-largest transaction of the year. Interestingly, this transaction was not made to an exchange, but rather to a large BTC holder, pointing to accumulation.

Centralized exchange net flows are also pointing to accumulation among investors. Glassnode reports that there was a total of $1.2 billion in BTC flowing out of exchanges in the last 24 hours. Such trends where investors are moving their coins out of exchanges always point to a long-term hold mentality which is usually bullish for the price of the digital asset.

BTC sending addresses drop to 11-month low | Source: Glassnode

Investors are also moving their coins around at a much lower rate the number of sending BTC addresses on a 7-day moving average dropped to a new 11-month low. All of these indicate that investors are choosing to hold their coins to wait for better price headwinds.

Crypto Market Gripped By Greed

In addition to the accumulation trend, the Bitcoin Fear & Greed Index also shows that investors are still very bullish in the market. The index is currently sitting at a score of 65 which indicates high levels of greed in the market. While greed can sometimes be a precursor of a downward correction, the index has maintained this level for the last week, and it is yet to reach the ‘Extreme Greed’ territory that usually marks the peak of a rally.

BTC recovers above $30,000 | Source: BTCUSD on TradingView.com

With such positive sentiment, investors are more likely to purchase the digital asset as euphoria sets in and more people expect the digital asset’s price to continue to climb. As long as this bullish sentiment continues to hold, then support will mount at $30,000, giving BTC the boost it needs to take on $35,000.

At the time of writing, BTC is trending at $30,030 after falling to the $29,000 level briefly. Despite reclaiming $30,000 though, the asset is still feeling the effect of the drawdown as it saw a 29% decline in trading volume over the last day.

Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet… Featured image from iStock, chart from TradingView.com

Best Owie

Best Owie is a seasoned managing editor with a wealth of experience currently serving as the Managing Editor at NewsBTC. Best is a highly skilled professional with a track record of producing engaging and informative content. With a keen eye for detail and a passion for accuracy, Best is committed to ensuring that each article published meets the highest standards of quality.

Best has over six years of experience in the crypto industry and has overseen the creation and publishing of thousands of articles over the years. Best is always abreast of everything that is going on in the crypto industry in order to create and curate the most relevant content for readers. This shines through in Best’s publications, which are always clear and concise, enabling easy reading and understanding for all.

Best is also an avid learner and advocate for new technology. This has seen Best dive into topics in areas such as decentralized finance (DeFi), non-fungible tokens (NFTs), Layer 2 blockchains, etc. In addition to this, Best is a vocal member of the crypto community across various social media platforms such as X and Reddit. Best’s work garners tens of thousands of readers monthly, who rely on the information in these publications to keep up-to-date with everything happening in the crypto community.

Best’s articles explore breaking news, intricate systems such as yield farming, liquidity pools, and other decentralized finance (DeFi) systems. This is because Best understands the importance of information to gaining financial freedom and believes that everyone should have access to this information.

Best also believes in leveraging the blockchain for philanthropy to create the most positive social impact. This involves work with charitable organizations focused on financial literacy and education. With each article, Best lends a voice to important issues such as a more financially inclusive future, transparent systems for growth and development, and technology that is not self-serving but one that serves all of humanity.

When not curating engaging content, Best can be found reading a book with a cup of hot chocolate, enjoying a Netflix series, or exploring the outdoors with Green - the world’s most quiet and well-behaved Husky. Best’s interests also span other industries such as art, finance, and security, attending seminars and conferences in not just the crypto industry but other industries as well.

As an animal lover, Best is also involved with charities for animals, local shelters, and rescues. Best is also involved in local events that promote inclusivity, such as being a prominent member of hiking clubs and a cycling club, as well as being a part of a very happy group of animal lovers.

Best is a true professional in every sense of the word, with an exceptional dedication to producing high-quality work. This shines through in Best's work on and off the clock. These include advocating for inclusive crypto education for all, the impact of financial illiteracy, and the benefits of adopting new technologies such as cryptocurrencies. Best’s prolific career in the media industry is a testament of how hard work and dedication pays.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.