Bitcoin Bearish Signals Go Off Despite Recovery Above $44k, Dead Cat's Bounce? – NewsBTC

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Bitcoin observes a few different bearish signals going off despite strong recovery above $44k, could it be a dead cat’s bounce?
 
As explained by a CryptoQuant post, a bunch of bearish Bitcoin signals have gone off despite some fresh movement up.
First, the miners reserve has started to decline. This indicator shows the total number of coins that miners are holding in their wallets.
A downtrend in the metric’s value suggests miners have started sending their Bitcoin to exchanges for selling purposes.
Second is the Long-Term Holder SOPR (LTHSOPR) that shows the degree of realized profits and loss for those coins that haven’t moved on the chain since at least 155 days (which means these coins belong to long-term holders).
Related Reading | Will Fear And Greed Keep Bitcoin Buyers From The Halloween Effect?
This metric has also been showing low values, implying these long-term holders are more likely to sell their coins right now.
Here is a chart showing the trend in both these indicators for Bitcoin:

Next is the Bitcoin exchange reserve, an indicator that measures the total number of coins present on wallets of all centralized exchanges.
The below chart shows how the reserve’s value has changed recently:

As the graph shows, the Bitcoin exchange reserve has started trending up after a long period of constant decline. When the metric’s value goes up, it means investors are starting to send their coins to exchanges for withdrawing to fiat or purchasing altcoins.
Finally, there is the funding rate, which highlights whether investors are finding long positions better or short ones.

As the above chart shows, the BTC funding rates have dipped below zero, signifying that short positions are more hot right now.
Related Reading | Mid-Cap Altcoins Hold Onto Highs Better Than Bitcoin And Ethereum
All of these signals show a bearish outcome in the short term at least. However, the price has started moving up for now nonetheless.
It’s possible this recovery above $44k is just a dead cat’s jump, and that the price would move down soon as these indicators suggest, but there is still some chance this recovery holds.
At the time of writing, Bitcoin’s price floats around $44k, down 7% in the last 7 days. The below chart shows the trend in the price of the coin over the last five days.

Loves to write, enthusiastic about cryptocurrency. Currently studying Physics at university.
NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.
We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.
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© 2021 NewsBTC. All Rights Reserved.

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