According to a recent tweet by Santiment, a prominent data analysis firm, panic selling has gripped the crypto community as Bitcoin’s value plummeted to $27,100 on May 10th. It also shows two major sell calls when BTC bounced, the first on 8th May and the second yesterday.
However, amidst the chaos, there is a glimmer of hope. Prices have already shown signs of recovery, hinting at the resilience of the market. According to the data from CoinMarketcap, Bitcoin is currently trading at $27,558.27, with a notable increase of about 44.58% in the 24-hour trading volume.
Interestingly, this is not the first time that crypto traders have faced such a situation. In fact, as per Santiment’s tweet, moments of fear, uncertainty, and doubt (FUD) are often followed by price hikes. The tweet suggests that such moments could potentially offer a great opportunity to buy cryptocurrencies at a discounted price.
In response to the tweet, community members voiced their thoughts on the current state of Bitcoin. One member noted that the recent activity was a signal that the next dip would be significant for those who continue to invest.
Another advised them to remain calm and hold onto their Bitcoin, despite the loss of bullish momentum in the market over the last few days. Looking at the bigger picture, some members expressed concern that the price action resembled a Head and Shoulders formation, which could result in a substantial downward move if the price drops below $27,000.
Glassnode Reports Upward Repricing Of Bitcoin Short-Term Holder Cost Basis
Meanwhile, in a tweet, Glassnode revealed some interesting insights about the current state of Bitcoin’s on-chain cost bases. According to the tweet, there has been a significant upward repricing of the short-term holder cost basis over the past few months as their average acquisition price inches closer to the spot price.
This trend has not gone unnoticed, as many in the crypto community are eagerly anticipating the spot price’s reaction to this development in the coming months. The market cost basis (Market-CB) is at $20.1K, the long-term holder cost basis (LTH-CB) is at $21K, and the short-term holder cost basis (STH-CB) is now at $25.3K.
Glassnode’s tweet implies that this shift in the STH-CB could have significant implications for the broader Bitcoin market, making it a topic of great interest and speculation. However, the spot price’s response to this event is still to be seen, but the crypto community will certainly keep a close eye on it going forward.
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