- Bitcoin transaction volume has started to decline in the recent past.
- Ethereum fell by more than 4% and the meme coins followed a similar trend.
The entire crypto market, including top coins such as Bitcoin [BTC] And Ethereum [ETH], has enjoyed a comfortable rally in recent weeks. Most cryptos managed to post promising gains, allowing the capitalization of the overall crypto market to rise.
Unfortunately, like all good things, this bull rally came to an end. So let’s take a look at the state of the crypto market to see what the future holds as we enter the end of 2023.
Bitcoin’s performance looks robust
At the time of writing, the cryptocurrency market cap was $1.4 trillion. However, Santiment recently published an analysis pointing out that the comfortable bull rally came to an end sometime around November 12.
📊 #Crypto market caps have temporarily run out after the massive four-week rallies. We take a look in our market report from mid-November #Bitcoin‘s supply disappearing from the exchanges, and how the crowd will affect prices for the rest of the year: https://t.co/jhUT3OPulx pic.twitter.com/Pd46PH2Npj
— Santiment (@santimentfeed) November 18, 2023
Santiment’s latest report also highlighted how the king coin performed during the bull rally. For starters, the price of BTC rose by almost 30% last month.
According to Santiment’s report, key wallets holding between 10 and 10,000 BTC have lost 50,882 bitcoins in the past 30 days. Interestingly, after a comfortable increase in transaction volume, the metric started to decline at a time when BTC‘s value continued to rise.
Source: Santiment
Like the transfer volume, Bitcoin’s MVRV ratio has also increased in recent weeks. Santiment’s report noted that 365-day average trading returns were still +32%, implying that they may need to level out too close to 0% before a restart can occur.
Nevertheless, it is encouraging that the dormant token movement was quite active in the first half of November.
Source: Santiment
This is what you can expect from Bitcoin
Like Santiment’s report, AMBCrypto’s analysis also found that the possibility of Bitcoin’s price action slowing was high. From CoinMarketCapBTC has already fallen by more than 15 in the last seven days.
At the time of writing, it was trading at $36,656.75 with a market cap of over $716 billion.
Trading volume also plummeted by 40%, indicating that investors are less willing to trade the coin. BTC‘s Fear and Greed Index had a reading of 69, meaning the market was in a ‘greed’ position at the time of writing. When this happens, it brings with it the possibility of a price drop.
Source: Glassnode
AMBCrypto’s analysis of BTC’s daily chart indicated that the MACD showed a bearish crossover. The Relative Strength Index (RSI) also showed a decline in recent days.
Bitcoin’s Bollinger Bands suggested that the coin’s price entered a less volatile zone, minimizing the chance of an unprecedented surge. Nevertheless, the Chaikin Money Flow (CMF) remained above the zero neutral line – a hopeful sign.
Source: TradingView
Altcoins also rose significantly
Ethereum was not left out of last month’s rally. According to CoinMarketCap’s factsThe price of ETH has risen by more than 25% in the past 24 hours, pushing it above the $2,000 mark.
aMBCrypto’s analysis of Santiment’s data revealed that ETHThe company’s trading volume rose every time its price rose. A positive signal for Ethereum was that the number of transactions continued to rise consistently. When the price of the token crossed $2,000, the MVRV ratio also spiked.
Source: Santiment
But like BTC, ETH’s bull run is also showing signs of coming to an end, as its price has fallen more than 4% in the past seven days. At the time of writing, it was trading at $1,959.51 with a market cap of over $235 billion.
When AMBCrypto checked CryptoQuant’s factsit turned out that selling sentiment was dominant in the market.
Both Ethereum’s Korea Premium and Funds Premium were red, meaning Korean retail investors and investors in funds and trusts, including Grayscale, have relatively weak buying sentiment.
Ethereum’s transaction count and transfer volume also fell – a worrying sign.
Interestingly, while the price of the token fell, demand in the derivatives market increased. ETH’s funding rate was green, indicating that investors were purchasing the token at a lower price at the time of writing.
Furthermore, the Taker Buy Sell Ratio was also green, further demonstrating that buying sentiment in the futures market was high. Therefore the possibility of ETH It seems likely that the downward trend will continue in the coming days.
Source: CryptoQuant
How are the meme coins going?
The meme coin pack followed the king of altcoins as their values also plummeted in the recent past. For example, Dogecoin [DOGE], The world’s largest meme coin has registered a drop in value of almost 7% in the past 24 hours.
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Shiba Inu [SHIB] had a similar fate as the token’s price also fell by more than 5% over the past seven days.
Considering all the above figures and market conditions, it can be concluded that the market may remain a bit sluggish in the coming days.