The on-chain analytics firm Glassnode has highlighted the $97,000 to $98,000 zone as an important one for Bitcoin. Here’s why. Bitcoin CBD Suggests Build Up Of Supply In This Range In a new post on X, Glassnode has discussed about a potentially significant zone for Bitcoin based on the Cost Basis Distribution. The Cost Basis Distribution (CBD) is an indicator that measures the amount of the BTC supply that investors last purchased or transferred at the various price levels. As is visible in the above graph, there is a dense supply zone located between $97,000 to $98,000. Generally, investors are quite sensitive to retests of their cost basis, so a large amount of them (or alternatively, a few large holders) having their acquisition level inside a narrow range could make retests of it significant for Bitcoin. Related Reading: Bitcoin STHs Capitulate: 14,700 BTC Moved To Exchanges At Loss When the mood in the market is bullish, holders can react to retests of their cost basis from above by buying more. They may do so believing that the same level would end up proving profitable again in the future and the retrace is just a ‘dip.’ The cryptocurrency suffered a plunge yesterday and nearly touched this region. Since then, however, things have turned around for the asset and it has gained some distance over it once more. In the event that the decline does continue, which may not be too unexpected given the volatile geopolitical situation at the moment, the zone could end up acting as the next true pivot for Bitcoin, according to the analytics firm. While the CBD tells us where the cryptocurrency’s supply is concentrated, it doesn’t contain any information about who bought or sold at those price levels. Glassnode’s behavioral cohorts, investor groups divided on the basis of their behavior, solve this problem. Here is a chart that shows the trend in the Bitcoin supply held by these holder cohorts over the past few years: There are five of these behavior groups. First Buyers (green) include the investors who are buying Bitcoin for the very first time. As displayed in the chart, the supply of this group has been on the rise, indicating fresh demand has been coming in. Momentum Buyers (blue) are those that capitalize on market momentum by buying during uptrends. On the opposite spectrum are the Conviction Buyers (purple), who buy despite falling prices. Finally, there are the Loss Sellers (red) and Profit Takers (yellow), who correspond to investors exiting at a loss and profit, respectively. During the past couple of weeks, the former cohort has seen an increase of 29%, a sign that weak hands have been capitulating. Related Reading: Consolidation Takes Its Toll: Bitcoin Investors No Longer Greedy That said, the analytics firm has noted, “Conviction Buyers also increased, suggesting sentiment isn’t collapsing. Some are cutting losses – others are actively lowering their cost basis.” BTC Price At the time of writing, Bitcoin is floating around $103,900, down more than 4% in the last seven days. Featured image from Dall-E, Glassnode.com, chart from TradingView.com
On-chain data shows Bitcoin whales holding since between three and five years ago have come alive to move a large number of tokens. Bitcoin HODLer Whales Have Broken Their Silence Recently In a new post on X, CryptoQuant community analyst Maartunn has talked about how some old Bitcoin investors have shown movement recently. The on-chain indicator of relevance here is the “Spent Output Age Bands” (SOAB), which tracks the transaction activity related to a given ‘age band.’ An age band defines a time-range during which coins falling inside the band were last transacted on the network. The 1 day to 1 week band, for example, includes the part of the BTC supply that was last moved between 1 day and 1 week ago. Related Reading: Is Bitcoin Demand Returning? Active Address Trend May Suggest So When addresses falling inside a particular age band make a transaction, the corresponding SOAB registers a spike. In the context of the current topic, the group of focus is the 3- to 5-year-old group. Below is the chart shared by the analyst that shows the trend in the SOAB of the cohort over the past day: As displayed in the above graph, the indicator has registered a large increase for the 3-year to 5-year age band, which implies the investors have just moved a huge amount of old coins. In total, the age band has been responsible for transactions involving 8,003 BTC. At the current exchange rate, this stack is worth more than $760 million in US dollars. Statistically, the longer an investor holds onto their coins, the less likely they are to sell them in the future. This means that as holders mature into the older age bands, they become more resolute. The HODLers of the market (holding for more than 155 days) are known as the long-term holders. Considering that the age band from the chart involves coins older than three years, the investors holding them must be stalwart even by HODLer standards. Thus, to see these diamond hands break their long silence to move such a large stack could be a worrying sign for Bitcoin, if the motive here is for selling, as is often the case when long-dormant tokens shift. Related Reading: Dogecoin Could Rally To $0.74 ATH If Price Closes Month Above This Level, Analyst Says The movement from the 3-year to the 5-year age band has come as BTC’s recovery rally has stalled into flat price action. It’s possible that these whales think this may be their best chance of getting out with their profits, so they have decided to sell. The SOAB of this Bitcoin group and other old ones can now be worth keeping an eye on, to see if more of the resolute hands join in on the profit-taking. BTC Price At the time of writing, Bitcoin is trading around $95,100, up almost 2% in the last seven days. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
On-chain data shows the Bitcoin transaction count has plunged to the lowest level since October 2023. Here’s what this could mean for BTC’s price. Bitcoin Transactions Have Seen A Significant Slowdown Recently As pointed out by CryptoQuant author IT Tech in a new post on X, the BTC transfer activity has dropped to relatively low levels recently. The on-chain indicator of relevance here is the “Number of Transactions” from the market intelligence platform IntoTheBlock, which measures, as its name suggests, the daily number of moves that addresses across the network are making. Related Reading: Dogecoin Shark & Whale Population Rises—Price Turnaround Incoming? Now, here is the chart shared by the analyst, that shows the trend in its value over the last few years: As displayed in the above graph, the Number of Transactions has seen a large drop for Bitcoin recently, suggesting that investors are making much fewer moves on the blockchain now. Generally, a drop in network transaction activity is a sign that the traders are losing interest in the cryptocurrency. Any notable move in the price is only sustainable when a large number of investors are providing the fuel to support it, so it can be hard for BTC to mount up a rally when the Number of Transactions declines to a low level. From the chart, it’s visible that the investors were making a high number of moves in the lead-up to the Bitcoin price rally beyond $100,000. But interestingly, the indicator plunged before the price peak arrived, implying that signs of the rally not having too much time left may have already been there from an on-chain perspective. Recently, the Number of Transactions briefly saw a crash to a level that it hasn’t touched since October 2023. Back then, the low transfer count didn’t last for too long and was in fact followed up by a burst of activity that accompanied a price rally. It’s possible that something similar could happen this time as well, but one key difference between then and now is that the recent downturn in the indicator has been more prolonged. Naturally, if things are indeed going to be different this time, then a lasting lack of interest from the investors could be a bad sign for the bulls. That said, an indicator that may provide for an argument against a shift away from a bull market is the Cycle Extreme shared by Axel Adler Jr, another CryptoQuant author. “Cycle Extreme identifies the extreme points of price cycles,” explains the analyst. The indicator makes use of various popular Bitcoin on-chain indicators like the MVRV Ratio and SOPR to determine this. Related Reading: Litecoin Breaks Under Parallel Channel: Analyst Predicts This Target As is apparent from the graph, the indicator has often been reliable for pointing out inflection points in Bitcoin. “At the moment, this metric does not give any clear signals,” notes Adler Jr. BTC Price At the time of writing, Bitcoin is trading around $83,600, up almost 1% in the last week. Featured image from Dall-E, CryptoQuant.com, IntoTheBlock.com, chart from TradingView.com
Data shows that the sentiment of Bitcoin has cooled off from extreme greed as bearish price action continues for BTC and other cryptocurrencies. Bitcoin Fear & Greed Index Is Now Pointing At ‘Greed’ The “Fear & Greed Index” is an indicator created by Alternative that tells us about the average sentiment among investors in the […]
On-chain data shows the Bitcoin investors who purchased at the top are capitulating following BTC’s drawdown under the $93,000 level. Bitcoin Short-Term Holders Have Just Sold Big At A Loss As an analyst in a CryptoQuant Quicktake post explained, the latest BTC crash has triggered panic among the short-term holders. The “short-term holders” (STHs) are the Bitcoin […]
Data shows the Bitcoin Coinbase Premium Gap has plunged into the negative territory following BTC’s latest high above $98,000. Bitcoin Coinbase Premium Gap Has Just Observed A Plummet As explained by CryptoQuant community analyst Maartunn in a new Quicktake post, the recent positive Coinbase Premium Gap has just disappeared. The “Coinbase Premium Gap” here refers […]
Dogecoin has broken away from the rest of the market with a 9% surge. Here’s why this could be bad for Bitcoin, according to history. Dogecoin Has Registered A 9% Jump During Last 24 Hours While most of the cryptocurrency market has seen sideways price action during the past day, Dogecoin has shown to be different as its value has witnessed a notable increase. Related Reading: Bitcoin Holders In Profit Hits 95%: Is BTC Overheating? The below chart shows the trend in DOGE’s price over the past month. From the graph, it’s visible that the Dogecoin price has claimed the $0.134 mark with this rally and has surpassed the high from last month. The memecoin is now close to the July top, so if this run continues, the memecoin can potentially have a go at it as well. In terms of the weekly returns, the latest jump has meant that DOGE is now up more than 24%, which has made it the best performer among the top 50 coins by market cap. Dogecoin isn’t the only memecoin that has been rallying; the asset’s cousin Shiba Inu (SHIB) has also enjoyed bullish momentum during the past day, although its jump of 5% is less impressive than DOGE’s. This latest focus on meme coins may not be the best sign for the cryptocurrency sector as a whole. Market Topped Out The Last Time Memecoins Got The Attention According to data from the analytics firm Santiment, the Social Dominance of the memecoins had spiked during the recent Bitcoin top above the $68,000 level. The “Social Dominance” here refers to an indicator that keeps track of the percentage of the discussions related to the top 100 coins on social media that a given coin or group of assets is occupying right now. Here is a chart that shows how the Social Dominance of the top 6 layer 1 assets has compared with that of the top 6 meme coins recently: As displayed in the above graph, the Social Dominance of the memecoins had shot up earlier as Bitcoin and others had rallied, suggesting that investors had started paying attention to these speculative assets. This interest in the meme coins, though, ended up coinciding with the market top. “Typically, markets correct when focus shifts away from layer 1’s and toward more speculative assets due to greed,” explains the analytics firm. With Dogecoin and Shiba Inu pulling away from the pack during the past day, it seems the investor greed is still high, which can potentially lead to more bearish action for Bitcoin and other top assets. Related Reading: Bitcoin Whale Transfers See Massive Spike: Sign Of Profit-Taking? From the chart, it’s visible that the market has tended to reach bottoms when attention has shifted back to the layer 1 networks, so it’s possible that this may have to happen again if the sector-wide run has to continue. Featured image from Dall-E, Santiment.net, chart from TradingView.com
Data shows the Bitcoin Coinbase Premium Gap has turned negative recently. Here’s what this could mean for the asset’s price. Bitcoin Coinbase Premium Gap Has Just Observed A Deep Plunge As an analyst in a CryptoQuant Quicktake post explained, the Coinbase Premium Gap has seen a rapid trend reversal recently. The “Coinbase Premium Gap” here refers to an […]
Bitcoin has continued its bearish momentum as its price has now slipped below $56,000. Here’s what could be behind this trajectory, according to CryptoQuant’s Head of Research. Bitcoin On-Chain Metrics Are All Giving Bearish Signals Right Now In a new thread on X, CryptoQuant Head of Research Julio Moreno has discussed why the original cryptocurrency has been struggling recently. “Bitcoin price is down simply because there is no demand growth,” notes the analyst. Related Reading: Bitcoin Momentum Indicators Are All Showing Death Cross: Say Hello To Bear Market? To showcase how demand for the asset has been looking like, Moreno has shared the chart for the “Apparent Demand” indicator, which leverages on-chain data to estimate the 30-day demand for BTC among investors. According to the above graph, demand for Bitcoin had been high earlier in the year, according to this indicator. Still, after peaking in April, the indicator sharply declined towards zero. Since then, the Apparent Demand has continued to consolidate around this neutral level, which may be why the cryptocurrency’s price has been locked in an overall bearish trajectory. The second indicator that the CryptoQuant head has cited is the Bitcoin Bull-Bear Market Cycle Indicator. This metric combines a few BTC indicators related to profit and loss to produce one value that sums up the entire market. From the graph, it’s visible that the the asset had been inside the historical “Overheated Bull” region from the perspective of CryptoQuant’s Bull-Bear Market Cycle Indicator back when its price had set the all-time high (ATH). After the coin had cooled off from this top, the indicator flashed a normal “Bull” signal, just like it had done in January and February. These bull market conditions were maintained until the crash early last month. During this plunge, BTC dropped below $50,000, and the Bull-Bear Market Cycle Indicator flagged the market as “Bear.” Since then, the indicator has continued to consolidate around the transition boundary, jumping back and forth between Bull and Bear signals. In the past week or so, though, the metric has consistently maintained inside the Bear region, which may be why Bitcoin has registered a drawdown of 6% in this window. Related Reading: Dogecoin Among Altcoins Seeing Deepest Trader Losses: DOGE Rebound Soon? Moreno has also pointed out a price level to watch, as BTC is quite close to retesting it. The level in question is the lower band of the average cost basis of the BTC traders. At present, this level is situated around $55,500. It remains to be seen how a retest of this level goes if the cryptocurrency continues its decline. BTC Price Bitcoin is currently trading around $55,900, which means the coin is pretty close to retesting the trader above the cost basis level. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
Data shows three popular Bitcoin momentum indicators recently formed a death cross pattern. Here’s what usually follows this formation. Bitcoin Momentum Indicators Have Seen Bearish Crossovers Recently In a new CryptoQuant Quicktake post, an analyst has discussed the latest trend in three momentum indicators related to Bitcoin. The momentum indicators here refer to combinations of some important moving averages (MAs) related to the cryptocurrency. The first is the “Active Address Momentum,” which involves the 30-day and 365-day MAs of the daily unique number of BTC Active Addresses. An address is said to be “active” when it makes some transaction on the network, whether as a receiver or sender. Related Reading: $170 Million In Crypto Longs Bite The Dust As Bitcoin Plunges Under $57,000 The number of Active Addresses may be the same as the number of users visiting the network, so this metric tells us how the blockchain activity is looking right now. Here is the chart shared by the quant that shows the trend in the 30-day and 365-day MAs of the Active Addresses over the last few years. As displayed in the above graph, the monthly average of the Active Addresses saw a cross under the yearly average shortly after the asset’s rally to the new all-time high (ATH) and has since remained under it. This crossover implies activity on the BTC blockchain has been on the decline. Generally, user interest keeps rallies fueled, so an increase in Active Addresses is needed to keep any more sustainable. As investors are starting to pay less attention to the cryptocurrency, conditions may not be right for a bull run anymore. The chart shows that this kind of crossover also occurred at the end of the bull run in the first half of 2021, although the second-half rally did occur regardless. The second momentum indicator is the famous Market Value to Realized Value (MVRV) Ratio, which tells us whether the investors are in profit or loss. As the chart shows, the MVRV Ratio has also seen its monthly cross below its yearly, suggesting investor profits have been shrinking. This pattern has historically served as a death cross, with BTC shifting towards a bearish phase following it. The same cross also appeared just before the 2022 bear market kicked off. Related Reading: Bitcoin Could Drop To $40,600 If This Happens, Crypto Analyst Says Finally, there is also the bearish crossover between the 50-day and 200-day MAs of the Bitcoin price itself. Given all these negative patterns across the different Bitcoin indicators, the cryptocurrency may be heading towards at least a short-term bearish period. BTC Price Bitcoin has struggled recently as its price has dipped towards the $56,500 level. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
An analyst has explained how Bitcoin could witness a drop to the $40,600 level based on a pattern forming in its 2-month price chart. Bitcoin Has Seen A TD Sequential Sell Signal On Its 2-Month Price In a new post on X, analyst Ali Martinez has discussed about a Tom Demark (TD) Sequential signal that has formed in the 2-month price of Bitcoin. The TD Sequential is an indicator in technical analysis (TA) that’s generally used for spotting positions of probable reversal in any asset’s price. This indicator involves two phases: setup and countdown. In the first of these setups, candles of the same color (that is, whether red or green) are counted up to nine. After these nine candles are in, the asset could be assumed to have reached a point of turnaround. Related Reading: Bitcoin Investors Beware: MVRV Has Given Bear Market Signal Naturally, if the candles that led to the setup’s completion were green, then the TD Sequential would give a sell signal. Similarly, red candles could suggest a bottom may be here. Once the setup is done with, the second phase of the indicator, the countdown, begins. The countdown works much like the setup, with the main difference being that candles here are counted up to thirteen, instead of nine. Following these thirteen candles, the asset may be considered to have reached another potential top or bottom. Bitcoin has completed a TD Sequential phase of the former type recently. Here is the 2-month price chart of the cryptocurrency shared by the analyst, which shows this signal: As displayed in the above graph, the Bitcoin 2-month price has recently finished a TD Sequential setup with nine green candles, implying that the cryptocurrency may have encountered some kind of top. Since the signal has appeared, BTC has been on the way down, with its price currently under the $57,000 level. Thus, it’s possible that this pattern’s bearish effect may already be taking hold. As for how deep this drawdown can take Bitcoin, Martinez has pointed out the support level at $51,000. This level corresponds to the 0.236 Fibonacci Retracement level from the recent BTC top. Related Reading: Bitcoin, XRP See Declining Whale Activity: What It Means Fibonacci Retracement levels are based on the Fibonacci series, where dividing each number (beyond 5) in the series by the next numbers produces ratios that are consistent throughout the series. It’s possible that Bitcoin may find support at the next such important ratio, but the analyst notes that if the $51,000 support gets breached, the cryptocurrency could end up going all the way down to $40,600, which corresponds to the 0.382 Fibonacci Retracement level. In the scenario that BTC does end up revisiting this level, its price would have gone through a drawdown of more than 28% from the current level. It now remains to be seen how the asset’s trajectory plays out from here. BTC Price Bitcoin has furthered its latest decline during the past day as its price has now slipped to $56,600. Featured image from Dall-E, charts from TradingView.com
Data shows Bitcoin users on the Coinbase exchange have been selling recently, a potential reason behind BTC’s drop under $58,000. Bitcoin Has Slipped Under The $58,000 Level In Its Latest Plunge Contrary to what investors may have hoped, Bitcoin hasn’t appeared to have shaken off bearish winds as the asset has witnessed another setback over […]
On-chain data shows the OTC desks that Bitcoin miners like to use have seen their balance shoot up, a sign that historically been bearish. Bitcoin Miners Have Been Depositing Big To OTC Desks Recently As pointed out by an analyst in a CryptoQuant Quicktake post, BTC miners have been sending coins to over-the-counter (OTC) desks […]
The Head of Research at the on-chain analytics firm CryptoQuant has explained why Bitcoin may be at risk of seeing a further drawdown. Bitcoin Is Still On Verge Of Bear Market In This Indicator In a new post on X, CryptoQuant Head of Research Julio Moreno has discussed the latest trend in the Bitcoin Bull-Bear Market Cycle Indicator. The “Bull-Bear Market Cycle Indicator” from CryptoQuant is an indicator based on the P&L Index. The P&L Index combines a few popular BTC metrics related to profit and loss, so it sums up the market balance in one value. This indicator can ascertain whether the asset is going through a bullish or bearish period by comparing it against its 365-day moving average (MA). Related Reading: Bitcoin Observes Pullback To $58,000: Is This The Cause? When the cryptocurrency breaks above its 365-day MA, it can be assumed to be inside a bull market. Similarly, falling under this MA implies a transition toward a bear market. The Bull-Bear Market Cycle Indicator, the actual metric of focus here, exists to make this pattern easier to follow; it keeps track of the distance between the P&L Index and its 365-day MA. Now, here is a chart that shows the trend in the Bitcoin Bull-Bear Market Cycle Indicator over the past couple of years: As displayed in the above graph, the Bitcoin Bull-Bear Market Cycle indicator had reached extreme values during the price all-time high (ATH) earlier in the year (colored in red). At these levels, the P&L Index has quite the gap over its 365-day MA, so the cryptocurrency’s bull rally has become overheated. The graph shows that the metric also gave this signal on a few other occasions during the past two years, and each time, the asset’s price reached the top. However, these previous tops weren’t enough to hold the market back in the long term, as the Bull-Bear Market Cycle Indicator continued to maintain inside the bull territory (shaded in orange), where the P&L Index is above its 365-day MA. Related Reading: This Is The On-Chain Level That Made The Bitcoin Crash Bottom However, bull market momentum has finally shown signs of running out, with the indicator even briefly plunging into the bear territory (light blue) during the recent price crash. While the metric has recovered back into the bull region with the surge that BTC’s price has observed, it’s still very close to the neutral mark, meaning it can potentially sink back into the bearish zone shortly. Based on this trend, Moreno notes that BTC could still risk seeing a further correction. BTC Price Bitcoin has seen its recovery stall recently, as its price is still trading around the $58,500 mark. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
On-chain data shows the Bitcoin whale entities have sold approximately $588 million in the cryptocurrency during the past week. Bitcoin Whales Have Made Large Selling Moves Recently As pointed out by analyst Ali Martinez in a new post on X, the BTC whales have sold around 10,000 BTC over the last seven days. The indicator of relevance here is the “Supply Distribution” from the on-chain analytics firm Santiment, which tells us about the total amount of Bitcoin that a given wallet group currently holds. Related Reading: Only 66% Of Ethereum Holders In Profit Despite 21% Price Jump The addresses or investors are divided into these cohorts based on the number of tokens that they are carrying in their balance right now. A holder with 5 BTC, for instance, is put inside the 1 to 10 coins group. In the context of the current topic, the whale cohort is of interest, which typically includes the addresses holding between 1,000 and 10,000 coins. At the current exchange rate, this range converts to $58.8 million at the lower end and $588 million at the upper one. Clearly, the investors belonging to the group would be among the largest in the market, so the cohort can be considered to have some influence. As such, the behavior of the whales can be worth keeping an eye on. Now, here is a chart that shows the trend in the Supply Distribution for this Bitcoin group over the past few months: As displayed in the above graph, the Bitcoin supply held by the whales has observed a significant decline recently. More specifically, the investors belonging to the cohort have removed a combined 10,000 BTC from their wallets during this selloff, worth about $588 million right now. From the chart, it’s visible that the sharpest selling came during the crash that BTC saw earlier, but these whales have also offloaded significant amounts in the recovery rally that has occurred over the last few days. So far, the Supply Distribution of the cohort has shown no signs of a reversal, so it’s possible that the whales are still in net selling mode. Naturally, this could slow down the asset’s recovery efforts. Nothing is set in stone, though, so the indicator could be used to monitor the coming days to see which direction these humongous investors really take. A net accumulation spree would suggest a renewal of confidence among the large hands and could pave the way for a further rise in the Bitcoin price. Related Reading: Bitcoin Investors Again Show Extreme Fear As BTC Slips To $59,000 In some other news, BTC has been forming a symmetrical triangle pattern recently and is closing in on its apex, as the analyst has explained in another X post. “Bitcoin is showing a symmetrical triangle on the lower time frames,” notes Martinez. “A sustained close outside the $59,000 – $59,530 range could trigger a 4.80% move for BTC.” BTC Price Bitcoin has struggled to put together bullish momentum in the last couple of days as its price has slumped to $58,800. Featured image from Dall-E, Santiment.net, charts from TradingView.com
Data shows that ‘paper’ Bitcoin has observed a notable surge recently while the cryptocurrency’s spot price has plunged down. Paper Bitcoin Has Been Rising While Spot BTC Has Stayed Stale In a new thread on X, analyst Willy Woo has talked about the state of the Bitcoin market. BTC has been seeing a bearish trend […]
On-chain data shows the Bitcoin whales took part in significant net distribution in the past month, potentially feeding into BTC’s bearish momentum. Bitcoin Whales Have Been Selling Amid Bearish Market As pointed out by analyst Ali in a new post on X, the BTC whales have been selling recently. The on-chain indicator of interest here […]
An analyst explained that Bitcoin has historically seen recovery from bearish phases like the one the cryptocurrency is going through. Bitcoin Hash Ribbons Show Miner Capitulation Is Ongoing In a new post on X, analyst Willy Woo has discussed the relevance of the Bitcoin hashrate to the asset’s price recovery. The “hashrate” refers to a […]
The market intelligence platform IntoTheBlock has discussed the bearish situation Bitcoin has been facing that has got many puzzled. Bitcoin Adoption Has Slowed Down To Multi-Year Lows Recently Bitcoin had a great first quarter in 2024, fueled by demand from the spot exchange-traded funds (ETFs) and institutional entities. During this run, the asset surpassed the all-time high (ATH) set back in the previous bull run, breaking a pattern in other cycles where ATHs were only reached after the Halving. Related Reading: Dogecoin, Cardano “Very Bullish” Based On MVRV: Santiment With the huge demand, things looked to be just getting started for the asset, but in the months since the ATH, the cryptocurrency has only been consolidating sideways. In a new post on X, IntoTheBlock talks about the current situation with Bitcoin, which many have been wondering about. The analytics firm has pointed out that the transfer activity on the BTC network has been high recently, as the Number of Transactions metric has set a new record. The most recent spike in the Number of Transactions on the Bitcoin blockchain has resulted from the emergence of the new Runes protocol, which allows users to mint fungible tokens on the network efficiently. “Institutional whales are present, and activity on the Bitcoin network is high,” says the analytics firm. “So, where’s the confusion?” The answer to that question lies in the trend of the New Addresses indicator. As its name suggests, this metric keeps track of the total number of new addresses that are popping up on the network daily. This indicator tells us about the rate of adoption the cryptocurrency is observing. Below is a chart showing how this Bitcoin metric’s value has changed over the past decade. The graph shows that the Bitcoin New Addresses has declined while the price has risen to its new high. As IntoTheBlock notes: The data reveals that this surge in usage and whale activity does not involve a significant influx of new participants. In fact, the number of new Bitcoin users has plummeted to a multi-year low, even falling below the levels seen during the 2018 bear market. Related Reading: Hard To Be “Too Scared Of Bitcoin Price Action,” Says Analyst. Here’s Why Historically, bull markets have accompanied sharp asset adoption as new investors get attracted by all the hype. In return, this influx of holders has helped fuel the rally. It would appear that despite the asset reaching a new ATH, the network has failed to attract new users. This is what has got many puzzled. The slowdown could, at least in part, be why Bitcoin has failed to continue its bullish momentum. It now remains to be seen whether this will change for the coin soon or not. BTC Price At the time of writing, Bitcoin is trading at around $65,000, down 7% in the past week. Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com
A quant has explained that Bitcoin could end up seeing an extended drawdown if the past pattern in the Open Interest ends up repeating. Bitcoin Open Interest Has Shown Similar Trajectory To November 2021 Recently In a CryptoQuant Quicktake post, an analyst talked about the recent trend in the Bitcoin Open Interest. The “Open Interest” […]
A quant has pointed out a pattern in a Bitcoin on-chain indicator that may imply the bull phase may be close to ending for now. Bitcoin NUPL Has Been At Overheated Levels For Weeks Now In a CryptoQuant Quicktake post, an analyst has talked about a bearish development that has recently occurred in the Bitcoin […]