Journalist
Posted:
- Most market indicators looked bearish for Bitcoin.
- In the event of a trend reversal, BTC could move towards $100,000 again.
While Bitcoin [BTC] struggled below $96,000, but the currency’s exchange activity has also witnessed a massive decline. Therefore, AMBCrypto planned to investigate further to find out whether this latest development will have a continued negative effect on the price of the king coin.
Bitcoin Transfers Hit Record Lows!
Woominkyu, an analyst and author at CryptoQuant, recently posted analysis point to a remarkable development. According to the analysis, BTC exchange transactions have dropped significantly.
The analysis stated: “The notable spikes in transaction volume correspond to significant price changes. In particular, the currency exchange peaks highlighted in the red circles precede or coincide with sharp price movements.
The first marked peak in 2017 corresponds to Bitcoin’s historic price increase, while the second peak around 2021 corresponds to another significant price movement.”
Recently, transaction volume has decreased significantly, indicating lower trading activity compared to previous years.
Where is BTC going?
Will this drop in exchange transactions hurt the price of the coin in the short term? Let’s find out.
According to our analysis of CryptoQuant data, Bitcoin net deposits on exchanges were lower compared to the past seven-day average, indicating an increase in selling pressure. The coin’s aSORP was also red, indicating that more investors were selling at a profit. In the middle of a bull market, this could indicate a market top.
BTC’s Binary CDD pointed out that the movement of long-term holders over the past seven days was higher than the average. If these movements were to apply to sales, it could have a negative impact.
Source: CryptoQuant
However, Glassnode’s data revealed a different story. The platform’s accumulation trend score indicator showed a value of over 0.93 at the time of writing.
A value closer to one indicates high buying pressure on BTC, which is a positive signal as high buying activity usually results in price increases.
Nevertheless, Coinglass’s facts pointed to another bearish measure. BTC’s Long/Short ratio recorded a sharp decline in the 4-hour time frame.
This meant that there were more short positions in the market than long positions, which could depress the price of the coin in the short term. If the price decline continues, BTC could drop to $91,000.
Read Bitcoins [BTC] Price prediction 2024–2025
However, if the bulls initiate a trend reversal, BTC could potentially retouch the $99.5k-$100k mark as suggested by the King Coin liquidation heatmap.
Source: Coinglass