- The transaction volume of Bitcoin has fallen sharply and reached levels that are last seen in 2023, which indicates reduced network activity.
- Trends with open interest suggest that traders are cautious, while BTC price is struggling to maintain important support levels near $ 86k.
Bitcoin’s [BTC] Transaction volume has fallen to levels that have not been seen since the beginning of 2023, so that concern about the power of the market is expressed.
The decrease in transaction activity comes at a critical moment, because BTC is confronted with increasing resistance near $ 86,000. Could this signal the start of a Bearish trend, or is the market only consolidating for another movement?
A sharp decrease in Bitcoin transactions sparked in concern
Recent data of Glass node highlights a significant decrease in the transaction volume of BTC.
On his peak in mid -2024, Bitcoin saw more than 700,000 daily transactions, a sharp contrast with the current levels that have fallen below 400K. Historically, a decrease in transaction volume has often preceded the period stagnation or corrections.
Source: Glassnode
This reduction in the number of transactions suggests that network activity slows down, which could indicate reduced market participation.
If the trend continues, Bitcoin may have difficulty maintaining its current price levels, because a lack of demand could weaken the support zones.
Open interest and volume confirm weakening momentum
A broader analysis of market indicators reveals further bearish signals. According to Cryptoquant, Bitcoin’s Open Interest (OI) has also fallen considerably.
Source: Cryptuquant
OI about exchanges was $ 86.2 billion, on the press, a decrease in highlights above $ 100 billion earlier in the year.
Although the OI has increased considerably in recent days, the comparison suggests that traders are reducing their lifting tree positions. This trend can lead to lower volatility and a reduced speculative purchase appetite.
In the meantime, Bitcoin’s trade volume, as followed by santiment, has also seen a remarkable decrease. BTC Volume recently hit 36.31 billion, a sharp fall in the Highs of February.
The lower volume confirms that fewer traders are actively engaged in BTC at the current price, which increases the chance of a downward movement if buyers fail.
Source: Santiment
Main levels to view
At the time of writing, Bitcoin acted at around $ 85,856, with resistance to $ 86,877. The 50-day advancing average was $ 85,873 and acted as a crucial pivot point. If you do not keep above this level, BTC can be returned to the support for $ 80,000.
Conversely, if BTC breaks past $ 87,500, this can challenge the level of $ 90,000, which remains a psychological barrier.
Although a price drop is not yet confirmed, traders must keep a close eye on the transaction volume and OI for signs of further deterioration.
In the coming weeks, Bitcoin can not restore a long -term consolidation phase or even a bearish correction when network activity does not recover.