- BTC fell more than 3% last week, trading at $26,887.08.
- Although the price action was bearish, the on-chain metrics turned bullish.
Bitcoin [BTC] managed to lift the price above $27,000, but last week things turned in the bears’ favor again. This happened because BTC witnessed a major price correction, causing its price to drop.
Read Bitcoins [BTC] Price prediction 2023-24
So let’s take a look at BTC’s performance on multiple fronts over the past week to see what’s actually going on.
Bitcoin drops below $27,000
After reaching almost $28,000 on October 9, the price of the king of crypto witnessed a price correction. Over the past seven days, the price of BTC has remained below $27,000. At the time of writing, it was trading at $26,887.08 with a market cap of over $524 billion.
In particular, James V. Straten, a popular crypto analyst, recently pointed out how Bitcoin has performed on multiple fronts over the past week.
To summarize this week #Bitcoin
Most likely spot ETF approval (next 6 months). #GBTC closed higher.
Maximum Fear: STHs sold the second most amount #Bitcoin this year at a loss with record divergence with LTHs (Wednesday).
Speculation has almost never been this low before, STH supply at all…
— James V. Straten (@jimmyvs24) October 14, 2023
For example, short-term holders sold the second-largest amount of Bitcoin at a loss this year, with a record difference compared to long-term holders. This also somewhat reflected the coin’s supply.
Off-exchange BTC supply remained flat, while on-exchange supply increased last week, reflecting investors’ fears of a further price decline. Nevertheless, whale activity around BTC remained high, as evidenced by the number of whale transactions.
Source: Santiment
A look at the Bitcoin mining sector
Bitcoin’s next big event is also getting closer as the blockchain expects its halving in 2024. BTC is less than 28,000 blocks away from halving. BTC’s hash rate hit an all-time high, struggling to adjust 6% higher this weekend.
As the event draws closer, miners have begun selling off their holdings. Glassnode’s data shows that miners’ balances have fallen sharply over the past month.
Source: Glassnode
Not only that, but according to CryptoQuantminers actually sold their assets at a loss compared to their annual average. While this reflected the fact that miners lacked confidence in BTC, it could also indicate a possible bottom in the market.
What can you expect from BTC?
While the past week did not go in investors’ favor, the coming days could look different as few of the data looked bullish. BTC. For example, Bitcoin’s binary CDD was green, meaning that the movement of long-term holders over the past seven days was lower than average.
Is your portfolio green? look at the BTC profit calculator
The NULP showed that the market was in a ‘fear phase’, which is usually a positive sign. Moreover, BTC derivatives market indicators also seemed bullish.
Notably, the Taker Buy Sell Ratio and Funding Rate were green, meaning that buying sentiment was dominant in the derivatives market.
Source: CryptoQuant