Bitcoin Charts Update: Bitcoin goes to 35k

BITCOIN’S VOLATILITY IS DRIVING THE MARKET BACK TO EXTREME FEAR

BITCOIN ON-CHAIN CHARTS UPDATE (2/23/2022)

Bitcoin is back to being indecisive. One moment it goes up, making us hope for continuation. Then right when we’ve convinced ourselves “that was it”, Bitcoin once again freefalls. As always, Bitcoin, although cryptocurrency’s global adoption is still skyrocketing and nowhere near its peak, is still very volatile.

Currently, Bitcoin is trading at $38.2k and the market is in a frenzy.

“Didn’t we see the bottom yet?”

“Are we going to 30k?”

And all other similar sentiments. So now, let’s take a look at some charts to get a perspective on what could be happening on-chain.

If we look at the chart below, we see that there has been no spike in CDD since Feb 1.

This means that recent selling pressure is not due to old coins selling but rather, new coins being sold at a loss. I have to point out though that this does not imply no old coins were sold, there could be, but the majority of the selling pressure comes from recently bought coins.

(*CDD – Coin Days Destroyed, where Coin Days refer to the number of coins in a transaction multiplied by the number of days it was last moved or transacted, giving more weight to older coins in general.)

How did we determine that they are selling at a loss?

Because on another chart, aSOPR, since the 17th, we are under 1. That implies the majority of the spent output profit is on the red.

Typically, Bitcoin Fear and Greed Index is back on Extreme Fear after its attempt to cross over the other side.

What are your thoughts on the market? Comment down below.

For more charts relevant to market top readings, stay tuned. 😉

DISCLAIMER: THIS IS NOT FINANCIAL ADVICE.


ABOUT THE AUTHOR

Elisa A.

Elisa is our Head of Market Analysis at Rocket Crypto X

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