Bitcoin, after holding steady sideways above the $ 32,5,000 mark for most of July, took a surprise blow below that support on July 14th. This rapid decline towards the crucial $ 30,000 level raised alarms for bulls and bears alike as the larger market switched from weak to strong hands.
Another alarming metric highlighted Bitcoin social media mentions falling from crypto, with the 7-day moving average dropping to a half-year low. Amid these worries, a faint light shimmered in the dark with the return of the whales and miners to the room. James Bennett, CEO of ByteTree, recently underlined his mixed predictions for the future of BTC.
Bitcoin’s price had stabilized above the $ 33,000 level earlier this week due to a decline in miners’ sales and increased accumulation. Bennett painted a different picture, however, warning that a number of other metrics could indicate decreased activity on the network. He hinted that Bitcoin is still stuck in a neutral zone and suffering from decreased appetite on the part of key players.
The analyst also indicated that weekly Bitcoin transactions have been in sharp decline since April. The ongoing market decline and the decline in transactions continued to result in a decline in the total value processed through the Bitcoin network. At the time of writing, the total value of transactions (1 week cumulative rolling) was $ 23.9 billion, the lowest since December 2020.
The analyst further emphasized that with a decline in on-chain activity, it is unlikely that Bitcoin will migrate north anytime soon. He said,
“Bitcoin is unlikely to see its next price surge and there could even be a downward movement.”
A market calm was also found in the transaction volumes with offers on the exchanges, which indicated little activity for BTC, especially on the spot market. On July 14, the supply on the stock exchanges was 2.52 million – the lowest value since January of this year.
Additionally, Bitcoin speed hit an all-time low of 195% on July 11th. However, an increase in the same range brought the indicator to 215% at the time of writing. The July 11 decline was a significant drop from its May 23 high of 593%. Bennett said of this:
“In the second half of last year, from July to December, the pace picked up, and then the price followed. As the speed decreased over the course of the year, the price followed again. “
The analyst also pointed to another “unprecedented trend” for Bitcoin where the indicator fell below the 150,000 Bitcoin line in the high-value bucket on a 7-day moving average chart with high traffic.
It is noteworthy here that the price of Bitcoin showed a weakness every time the indicator fell below this range, as it did towards the end of 2018 and 2019. In addition, this high-quality traffic was also an important driver of the last bull market.