Santiment Warns: 5 Indicators Flashing Bitcoin Turnaround Signals

Bitcoin is on the verge of a bearish turn, according to a leading crypto analytics firm. Santiment says five indicators are flashing warning signs, even though the king crypto is making moves closer to the $30,000 price level.

According to Santiment, the trading volume is cooling off, there’s been a decrease in market dominance, the number of active addresses is dropping, the average transaction value is decreasing, and the number of Bitcoin transactions is dropping.

Santiment Warns: 5 Indicators Flashing Bitcoin Turnaround Signals

The recent rally saw pretty decent trading volume coming in at the start, which is a healthy sign. However, things started to slow down a little as we inch higher.

Now we are observing a divergence in Price and Volume, which usually isn’t a good thing as it is signaling that there’s exhaustion in the price action. Sentiment says that the Social Volume and Social Dominance indicator is at a high level, which historically indicates the top of a price rally has arrived.

BTC’s Social Volume and Social Dominance are at their highest level in a year, indicating that the crowd is getting somewhat excited. This usually precedes a local top.

According to Santiment, the third bearish indicator is that long-term holders of Bitcoin are starting to become active again.

“Since mid-March, we saw two such spikes, between 2,800 and 3,000 BTC that are pretty long-term (five years) being activated. Could it be due to the crypto crackdown or CTFC [Commodity Futures Trading Commission] investigations? Who knows, but it is definitely something to keep an eye on.”

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