Bitcoin News: On-Chain Data Flags Bullish Signal After Sell-Off

Key Insights:

• Santiment data shows crowd fear has often aligned with short-term Bitcoin USD price support.
• CZ reassures the market as Bitcoin trades steadily despite recent selling pressure.
• Central bank gold buying helps explain why the BTC/USD price has lagged gold recently.

Bitcoin (BTC) USD is trading near $87,000 this week as selling pressure continued across the market. Data from Santiment, public comments from Binance founder Changpeng Zhao, and gold market trends are shaping views.

Discussion has been on where the BTC price could head next and why recent moves have lagged.

Santiment Data Shows Crowd Fear Often Moves Against Bitcoin Price

Bitcoin remained under pressure in recent days following a broad sell-off across major exchanges. According to Santiment, crowd behavior has offered useful signals during similar periods.

The analytics firm observed that short-term price moves often go against popular expectations. Santiment tracked social media mentions over the past three months. It focused on posts predicting Bitcoin would move lower or higher.

When traders expected lower prices, Bitcoin often rebounded. Conversely, when traders expected higher prices, Bitcoin often declined. This pattern suggests that crowd fear and crowd optimism can act as contrary indicators.

Santiment explained that rising mentions of words such as “lower” or “below” often align with market fear.

These moments have historically coincided with BTC USD price stabilization or modest recoveries. At the time of reporting, Bitcoin traded around $87,857 with a market value of nearly $1.75 trillion. Daily trading volume stood close to $33.94 billion.

It is worth mentioning that Santiment did not predict exact price targets. It only highlighted behavior patterns linked to short-term swings.

Market participants noted that such data does not guarantee a reversal. It instead provides context on trader positioning. Moving forward, Bitcoin USD price action could still react to macroeconomic signals and changes in liquidity conditions.

CZ Offers Public Reassurance on Bitcoin Market Stability

Changpeng Zhao, widely known as CZ, also addressed market concerns. The Binance founder returned to social media after a brief absence. He stated that Bitcoin USD would remain fine despite recent volatility.

CZ posted that Bitcoin, BNB, and the broader crypto market would be stable over time. His message followed several days of market uncertainty and declining prices. While brief, the statement was viewed as reassurance from a prominent industry figure.

CZ did not comment on BTC USD price levels or market timing. He did not reference regulatory issues or exchange operations. His message focused on long-term confidence rather than short-term movement.

Market observers noted that such statements can influence sentiment. However, they stressed that comments alone do not change market structure. Bitcoin USD price trends continue to depend on trading activity and external conditions.

Gold Buying by Central Banks Explains Why Bitcoin USD Lagged

Another explanation for recent Bitcoin underperformance came from market commentary shared by trader Merlijn. He argued that Bitcoin lagged behind gold due to heavy central bank purchases.

According to the analysis, central banks increased gold buying in recent months. This demand supported gold prices during periods of global uncertainty. Bitcoin did not benefit from the same institutional flows.

Merlijn stated that elevated uncertainty, including higher volatility readings, strengthened gold demand. As a result, gold outperformed Bitcoin USD on a relative basis. The trader described this as a key reason why earlier Bitcoin forecasts missed expectations.

He added that previous cycles showed a pattern. Gold often peaks first, and Bitcoin tends to move higher afterward. The analysis suggested that once gold demand slows, BTC USD could attract renewed interest.

Still, this view remains a projection, not a confirmed outcome. Bitcoin price behavior would still depend on market participation and risk appetite.

Nevertheless, the general market position is that cycles can differ over time. For now, Bitcoin continues to trade within a narrow range. On-chain data, sentiment indicators, and macro trends remain under close watch.

Traders are monitoring whether historical patterns will repeat or adjust under current conditions.