Bitcoin witnesses the development of a worrying deviation, which asks several questions about the sustainability of Cryptocurrency growth. Here is the most important so far – how does it affect price?
Network activity on the decline when the price rises
In a Quicktake post on the Cryptoquant platform, Crypto Pundit Cryptoonchain marked A growing negative deviation between Bitcoin’s price and the number of active addresses within the Cryptocurrency network.
The analyst’s report was due to Bitcoin Active Addresses Metric, which, as shown in, traces the number of unique wallet addresses participating in transactions in the network within a certain period. The value of this metric reflects the amount of user activity or involvement in the crypto network.
Source: CryptoQuant
From the diagram shared by Cryptoonchain, there is “a clear negative difference between Bitcoin’s price and the 14-day sliding average of active addresses.” What this means is that the wider Bitcoin Bull rally happens against a background of reduced network activity and user engagement.
The analyst on the chain further explained that such divergence usually acts as an early warning or signal that the haus -like momentum may lose its strength. When Cryptocurrency thus loses its Haussey momentumThe risk of the BTC price undergoing forensic activity can simultaneously increase.
Apart from the risk of correction, there is also the possibility that Bitcoin network activity will fall further. When this happens, the demand for BTC can be further weakened, which can temporarily translate into increased sales pressure.
BTC buyer at Binance who loses to the sellers
In another post on Cryptoquant, Online Pundit Arab chain Published Data from Binance that showed that net pressure vs Bitcoin price remained negative for most of the day. This means that more sales transactions have been completed compared to the purchase at Binance over the past 24 hours.
The Crypto expert also explained that buyers of pressing Bitcoin’s price over $ 113,000 was short, as the pressure side of the world’s largest exchange by trading the volume continued to expel the negative territory.
On the positive side of the market outlook, the Arab chain noted that “a clear and sustainable positive turn” in the pressure side, with a close to $ 113,000, is crucial for The market’s image To become a little more optimistic. From the press time, bitcoin is valued at about $ 109,610, which reflects any significant movement over the past 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chat on TradingView
Image from iStock, chart from tradingview
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