- Bitcoin broke down one of the last support zones around the $18,400-$18,200 level.
- The loss of this critical support level signaled that the price of BTC may continue its current downward trend.
- Santiment noted that the flagship cryptocurrency has fallen below $15.8k for the first time in two years.
One of the last support zones holding Bitcoin up around the $18,400-$18,200 zone was broken down by the cryptocurrency during the most recent bloodbath in the crypto market.
The loss of this critical support level signaled that the price of BTC may continue its current downward trend and may even reach lower levels.
The indicators on Bitcoin’s charts show no signs of solid bullish momentum, especially after the FTX crash and the massive market selloff.
However, there is some light at the end of the tunnel for the flagship cryptocurrency. Bitcoin is now showing some potentially bullish signals, according to the on-chain data aggregation platform, Santiment.
Bitcoin’s Address Activity Spikes
Santiment noted that the flagship cryptocurrency has fallen below $15.8k for the first time in two years. Nevertheless, address activity increased to its highest point in more than six months.
🧘 #Bitcoin dropped below $15.8k for the first time in 2 years, and address activity spiked to its highest level in over 6 months. #FUD due to lack of trust in exchanges historically benefits the patient, as we see $BTC continue moving into self custody. https://t.co/lz5FOkIkRX pic.twitter.com/6PKUA29nDE
— Santiment (@santimentfeed) November 21, 2022
Santiment further notes that as far as the crypto market goes, the patient gets rewarded due to the FUD that arises from a lack of trust in exchanges.
The chart above shows Bitcoin’s address activity soaring to its highest point since May over the weekend after the continued movement of BTC into self-custody.
This is in direct contrast to the price of the cryptocurrency because it currently struggles around $15,500, and an impending drop to lower levels looks more like a possibility as the days go by.
Bitcoin (BTC) Price Analysis
Over the last few weeks, little has changed in Bitcoin’s price performance because the bears continue to outweigh the bulls.
Bitcoin is one of the fastest-dropping coins and has decreased in price by 3% at the time of writing, according to data from CoinMarketCap.
The flagship cryptocurrency trades sideways on the hourly time frame between the support level at $16,000 and the resistance level at $16,713. However, Bitcoin’s price action has fallen again over the last 24 hours into a retest of the $16,000 zone.
However, despite the dip and the $16,000 retest, Bitcoin is now gaining back some of its dominance, as its market dominance now sits at 37.8% after a 0.3% increase over the last day.
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