Record-low Bitcoin speed shows that BTC can “go under”

In the early hours of July 14th, Bitcoin price unexpectedly hit $ 31,550 before slowly bouncing back above $ 32,900 in morning trading.

The rapid decline near the major $ 30,000 resistance level has sparked a warning between the bulls and bears, and while the $ 30,000-32,000 level continues to act as support, a recent market update by ByteTree CEO James Bennett paints a mixed picture of it what could be considered the BTC shop.

According to an analysis by Bennett, Bitcoin price has stabilized near $ 34,000 due to a decline in miner sales and an increase in accumulation, but he also warns that some indicators showing decreased activity on the network suggest that BTC is still in the neutral zone where there is a decrease in appetite from the major players.

Bitcoin trading is falling

According to Bennett, weekly bitcoin transactions have plummeted since April and are now close to 1.48 million transactions, up from the January 9 high of 2.57 million.

Due to the current market downturn and reduced transaction volume, the total transaction value on the Bitcoin network has dropped to $ 23.6 billion, the lowest level since December 2020.

Bennett says that due to the decline in on-chain activity:

“Bitcoin is unlikely to go up its next price and there could even be a downward move.”

Bitcoin speed drops to a record low

Bitcoin speed hit an all-time low of 195% on July 11, a sharp drop from its recent high of 593% on May 23. The speed is “a non-price indicator and measures the vitality of the Bitcoin network” according to the to Bennett.

Bennett says:

“In the second half of last year, from July to December, the rate of increase and the price thereafter also increased. As the rate fell for the year, prices rose again. “

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Miners are finally showing some signs of accumulation

A positive sign in the market is the recent surge in the accumulation of miners. That number has been falling in recent months as China blocks mining operations to the point that many companies have shut down completely and are in the process of moving to other countries.

As miners’ BTC inventory stabilizes and begins to rise, Bennett suggests that miners are accumulating again and this could be interpreted as a signal that Bitcoin price may be in the stabilization process.

Institutional dominance, a metric tracking the top fifth group of Bitcoin heatmaps, also shows a spike from July 12th. This shows that major Bitcoin holders have been ramping up their activity in the past few days while Bitcoin price has risen above $ 31,000.