The cryptocurrency market now seems to be in turmoil following the extended decline in the price of the largest cryptoasset, Bitcoin (BTC), below the $33,000 price area. This market condition has also severely impacted traders’ sentiment toward Bitcoin, according to a report from Santiment, a crypto on-chain and social metrics platform.
Bitcoin down 32% in 6 weeks
Bitcoin began trading this week at $34,038. However, buyers lacked the momentum to push up the price or at least sustain the price range, as BTC further dropped to a low of $32,650.
The largest cryptocurrency has been shading points since its all-time high (ATH) of $69,000 in November 2021. At the current price of $32,960, BTC is down over 52% from its ATH. A glance at the weekly chart also shows Bitcoin has printed six red candles consecutively. This represents an over 32% percent price decrease in about six weeks.
It is hard to predict the major reason behind the massive drop in Bitcoin. However, on-chain analytics firm Glassnode recently reported the Bitcoin exchanges’ seven-day moving average inflow volume at three-month of 1,755.021 BTC. This simply indicates that several Bitcoin holders moved their coins to exchanges this past few days, probably to sell.
Traders’ sentiment goes negative
Following the magnitude of price points shaded from Bitcoin in the past weeks, traders’ sentiment has gone significantly negative for the leading cryptocurrency. Santiment portrayed that traders’ sentiment toward Bitcoin is currently at six-week lows. The last time this level was seen was in March. The metric doesn’t look good for BTC, but it somehow hints at a possible rebound.
We typically prefer to see capitulation signs like this, as weak hands leaving the space is generally what is needed for a truly notable bounce.On-chain analytics platform, Santiment.
Clearly enough, Bitcoin is not the only cryptocurrency affected by the current market turmoil. Cardano (ADA) was seen at an 18-month low on 8th May. At the time of writing, Ether (ETH) is down over 25% on the 30-day timeframe. In just the last 24 hours, the entire crypto market is down 5.29%.