{"id":134112,"date":"2020-05-21T17:29:23","date_gmt":"2020-05-21T16:29:23","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=134112"},"modified":"2020-05-22T21:12:30","modified_gmt":"2020-05-22T20:12:30","slug":"on-chain-metrics-spell-trouble-as-bitcoin-dips-below-9000","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/on-chain-metrics-spell-trouble-as-bitcoin-dips-below-9000\/","title":{"rendered":"On-chain metrics spell trouble as Bitcoin dips below $9,000"},"content":{"rendered":"<p>The past 24 hours have been characterized by fear, uncertainty, and doubt in the cryptocurrency market. The state of commotion among investors and market participants alike appears to have been triggered by a 50 BTC <a href=\"https:\/\/cryptoslate.com\/sentiment-data-shows-investors-have-overreacted-to-2009-wallets-50-bitcoin-movement\/\">transaction<\/a> originating from a wallet that had not been touched in over a decade.<\/p>\n<p>As speculation mounted that the transaction was made by Satoshi Nakamoto, many believed that Bitcoin\u2019s creator was preparing to dump his holdings. Although data reveals that this is not the case and the wallet could simply belong to an early miner, the damage is already done.<\/p>\n<p>Since the news broke, the flagship cryptocurrency has plummeted by more than 10 percent and it recently dipped below $9,000. On its way down, Bitcoin has liquidated over $70 million worth of long and short positions on crypto derivatives exchange <a href=\"https:\/\/cryptoslate.com\/companies\/bitmex\/\">BitMEX<\/a>, according to <a href=\"https:\/\/datamish.com\/btcusd\/24h\">data<\/a> from Datamish.<\/p>\n<h2>Bitcoin sits at a critical point<\/h2>\n<p>From a technical perspective, Michael van de Poppe, a full-time trader based in Amsterdam, <a href=\"https:\/\/twitter.com\/CryptoMichNL\/status\/1263473182859804676?s=20\">said<\/a> that the $9,000 support level plays an important role in Bitcoin\u2019s uptrend.<\/p>\n<p>The analyst maintains that if the bellwether cryptocurrency is able to hold above this major supply barrier, it could easily bounce back and retest the $10,000 resistance level. But if the selling pressure behind Bitcoin increases, this level of support could break and jeopardize the bullish outlook.<\/p>\n<p>Under such circumstances, van de Poppe believes that the bearish momentum could have the ability to push BTC\u2019s price towards $8,500 or even $8,200.<\/p>\n<figure style=\"width: 1625px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/pbs.twimg.com\/media\/EYjCKUcXQAE6puT?format=png&name=large\" alt=\"Bitcoin US dollar price chart\" width=\"1625\" height=\"1001\" \/><figcaption class=\"wp-caption-text\">BTC\/USD chart. Source: <a href=\"https:\/\/twitter.com\/CryptoMichNL\/status\/1263473182859804676?s=20\">Twitter<\/a><\/figcaption><\/figure>\n<p>Meanwhile, trading aficionado, Dave the Wave, has repeatedly <a href=\"https:\/\/twitter.com\/davthewave\/status\/1263213239111839749?s=20\">stated<\/a> that Bitcoin is bound for a more significant correction. The well-known chartist has pointed out over the past couple of weeks that the pioneer cryptocurrency was sitting at overbought territory.<\/p>\n<p>Due to the significance of the upper pressure that Bitcoin experienced since March\u2019s Black Thursday, Dave argues that an increase in sell orders could trigger a retracement to $6,000.<\/p>\n<figure style=\"width: 1828px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/pbs.twimg.com\/media\/EYfVunuVcAAlW8m?format=png&name=large\" alt=\"Bitcoin US dollar price chart\" width=\"1828\" height=\"898\" \/><figcaption class=\"wp-caption-text\">BTC\/USD chart. Source: <a href=\"https:\/\/twitter.com\/davthewave\/status\/1263213239111839749?s=20\">Twitter<\/a><\/figcaption><\/figure>\n<h2>Investors are in the red<\/h2>\n<p>Out of all Bitcoin addresses, more than 49% are currently \u201cIn the Money,\u201d while 50.7% are \u201cOut of the Money,\u201d according to <a href=\"https:\/\/cryptoslate.com\/companies\/intotheblock\/\">IntoTheBlock\u2019s<\/a> \u201cIn\/Out of the Money Around Price\u201d model.<\/p>\n<p>These figures may indicate that after the recent downward movement, BTC holders could be losing confidence about what the near-term future holds.<\/p>\n<figure id=\"attachment_134114\" aria-describedby=\"caption-attachment-134114\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-134114 size-large\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-21-at-17.45.48-1024x368.png\" alt=\"In\/Out of the Money Around Price by IntoTheBlock\" width=\"1024\" height=\"368\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-21-at-17.45.48-1024x368.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-21-at-17.45.48-300x108.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-21-at-17.45.48-768x276.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-21-at-17.45.48-1536x552.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-21-at-17.45.48-2048x736.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-134114\" class=\"wp-caption-text\">In\/Out of the Money Around Price by <a href=\"https:\/\/cryptoslate.com\/companies\/intotheblock\/\">IntoTheBlock<\/a><\/figcaption><\/figure>\n<p>In the event of a steeper, the Global In\/Out of the Money model shows that Dave\u2019s $6,000 target may come true since there is barely any significant support barrier in-between.<\/p>\n<p>At around $6,300, roughly 3.7 million addresses bought more than 2 million BTC. This massive supply wall might help prevent any further selling pressure.<\/p>\n<figure id=\"attachment_134113\" aria-describedby=\"caption-attachment-134113\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-134113 size-large\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-21-at-18.01.10-1024x368.png\" alt=\"Global In\/Out of the Money by IntoTheBlock\" width=\"1024\" height=\"368\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-21-at-18.01.10-1024x368.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-21-at-18.01.10-300x108.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-21-at-18.01.10-768x276.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-21-at-18.01.10-1536x551.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/Screenshot-2020-05-21-at-18.01.10-2048x735.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-134113\" class=\"wp-caption-text\">Global In\/Out of the Money by <a href=\"https:\/\/cryptoslate.com\/companies\/intotheblock\/\">IntoTheBlock<\/a><\/figcaption><\/figure>\n<p>Although a $6,000 Bitcoin after the recent halving may seem out of the question, such a massive bearish impulse could help wipe out some of the so-called \u201cweak hands\u201d while allowing sidelined investors to get back into the market.<\/p>\n<p>A new inflow of fresh capital into the industry could eventually propel Bitcoin to higher highs and enter the <a href=\"https:\/\/cryptoslate.com\/this-data-shows-bitcoin-could-soon-see-a-retail-investor-frenzy\/\">bull market<\/a> that most investors and crypto enthusiasts alike have been <a href=\"https:\/\/cryptoslate.com\/prepare-for-fireworks-crypto-traders-are-gearing-up-for-a-massive-movement\/\">expecting<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The past 24 hours have been characterized by fear, uncertainty, and doubt in the cryptocurrency market. The state of commotion among investors and market participants alike appears to have been triggered by a 50 BTC transaction originating from a wallet that had not been touched in over a decade. As speculation mounted that the transaction [&hellip;]<\/p>\n","protected":false},"author":148,"featured_media":134116,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120,15323],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>On-chain metrics spell trouble as Bitcoin dips below $9,000<\/title>\n<meta name=\"description\" content=\"Bitcoin dropped 10% in the past 24 hours. 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Now, renowened analysts maintain that it could be bound for further losses and on-chain metrics support this view.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/on-chain-metrics-spell-trouble-as-bitcoin-dips-below-9000\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2020-05-21T16:29:23+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-05-22T20:12:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/05\/bitcoin-dip.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ali Martinez\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ali Martinez\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/on-chain-metrics-spell-trouble-as-bitcoin-dips-below-9000\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/on-chain-metrics-spell-trouble-as-bitcoin-dips-below-9000\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/#person\",\"name\":\"Ali Martinez\",\"url\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/ali-martinez\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/04\/victor-charles-profile-e1555981456737-300x300.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/04\/victor-charles-profile-e1555981456737-300x300.jpg\",\"caption\":\"Ali Martinez\"},\"jobTitle\":\"Analyst\",\"description\":\"Ali came across Bitcoin\u2019s whitepaper in 2014. 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