The price of bitcoin has once again tried to attack the psychological threshold of $40k.
In fact, it had already tried to do so on Monday, but quickly bounced back to $37,000.
This time the attack seemed more determined, and for a few hours the $40,000 level held.
But then, as often happens, when the Asian markets began to be active, after the closure of the US markets, the price returned below the psychological threshold.
For many days now, in fact, the American crypto markets, which are the second largest in the world in terms of overall volumes, have tended to push up the price of bitcoin, while the Asian markets, which are the largest in the world in terms of volumes, have tended to push it down.
So it is not surprising that in both cases, the last few times the price of bitcoin approached the $40,000 mark it did so while the Asian markets were at a standstill and the American markets were in full swing, and then the next drop was triggered when it was late in the evening or night in America.
Remember that crypto markets never close, but obviously the level of activity varies greatly from place to place depending on the number of active users at different times of the day, and night.
However, what happened between yesterday and today differs from what happened on Monday.
In fact, as Santiment points out, there are at least three important parameters that have been positive simultaneously in recent days.
How did #Bitcoin recover to $40k out of the blue? 3 of our key leading metrics all skyrocketed! $BTC‘s social and trading volumes both hit a 5-week, and address activity hit a 3-week high. When this trio jumps in unison, good things typically happen. https://t.co/J6aA6M0I6v pic.twitter.com/zhp2p5psFB
— Santiment (@santimentfeed) July 28, 2021
Indeed, Santiment explicitly says that 3 key metrics have taken off yesterday.
The first is the volume of mentions of the term “bitcoin” on social networks, which spiked the most in the last five weeks.
This figure is very important as it reflects the mass interest in the cryptocurrency. At a time like this, with several other bullish parameters, such interest is able to provide a significant boost in terms of increased buying pressure.
Trading volumes have also reached a five-month high, underlining that the increased interest is not just “platonic”, but is actually being reflected in concrete actions in the markets. In light of this, it is quite clear that yesterday’s price rise was due to increased buying pressure.
The last parameter is the number of daily active on-chain addresses, which reached a three-week high.
Santiment comments by saying:
“When this trio jumps in unison, good things typically happen”.