Bitcoin notices a few different bearish signals despite a strong recovery above $ 44k, could it be a dead cat bounce?
On-chain data shows Bitcoin miners have started selling, funding rates have turned negative
As explained by a CryptoQuant post, a bunch of Bearkin Bitcoin signals have gone off despite some new dynamics.
First, the minor reserves have begun to decline. This indicator shows the total number of coins that the miners have in their wallets.
The downward trend in metric prices suggests that miners have begun to exchange for the purpose of selling their bitcoins.
The second is the long-term holder SOPR (LTHSOPR) which shows the level of profit and loss available for coins that have not been in the chain for at least 155 days (meaning these coins are included in long-term holders).
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This metric also shows lower values, which means these long-term holders are more likely to sell their coins now.
Here is a chart showing the trends of these two indicators for Bitcoin:
The BTC miners reserve and the LTH SOPR | Source: CryptoQuant
Next is the Bitcoin Exchange Reserve, an indicator that measures the total number of coins in the wallets of all centralized exchanges.
The chart below shows how the value of reserves has changed recently:
The indicator seems to showing some uptrend | Source: CryptoQuant
As the graph shows, the Bitcoin exchange reserves have started to trend after a long period of continuous decline. When the value of the metric increases, it means that investors start exchanging their coins to withdraw from Fiat or buy Altcoin.
Finally, there is the fund rate, which highlights whether investors are finding long positions good or short positions.
funding rates look to be moving negative again | Source: CryptoQuant
As the chart above shows, the BTC fund rate has dropped below zero, which means that the short positions are hotter now.
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What do these indicators mean for the price of BTC?
All of these signals show a bearish result, at least in the short term. However, prices have started to move so far.
It’s possible that this recovery above $ 44k is just a dead cat jump, and the price will go down as these indicators recommend, but there are still some opportunities for this recovery.
At the time of writing, the price of Bitcoin is close to $ 44k, down 7% in the last 7 days. The chart below shows the trend of currency prices in the last five days.
BTC's price has started moving up after making a touch of $39.6k | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com