Bitcoin unexpectedly fell to $ 31,550 before slowly bouncing back to $ 32,736 as of this writing.
Bitcoin price chart | Source: Tradingview
The rapid decline to near the major resistance level of $ 30,000 sparked a bull and bear battle, and while the $ 30,000-32,000 area continues to act as support, ByteTree CEO James Bennett’s recent markets are mixed Picture of what could happen for Bitcoin.
According to the analysis by Bennett, Bitcoin price has stabilized near $ 34,000 as miners reduce sales and increase accumulation, but he also warns that some indicators of decreased activity on the network suggest it is still down located in the neutral zone, where the main actors have less appetite.
Bitcoin weekly transactions have plummeted since April and are now close to 1.48 million transactions, significantly less than the 2.57 million transactions on Jan. 9, Bennett said.
Number of Bitcoin transactions accumulated in 1 week | Source: ByteTree
Due to the current market downturn and reduced trading volume, the total transaction value on the Bitcoin network has dropped to $ 23.6 billion, the lowest level since December 2020.
Total value of Bitcoin transactions accumulated in 1 week | Source: ByteTree
As a result of the decline in on-chain activity, Bennett said:
“Bitcoin’s price is unlikely to go up and there could even be a downward movement.”
Bitcoin speed hit an all-time low of 195% on July 11, a sharp drop from its recent high of 593% on May 23. Speed is “a non-price indicator and a measure of the liveliness of the Bitcoin network”. according to Bennett.
“In the second half of last year, from July to December, the rate of increase and the price thereafter also increased. When the pace slowed for the year, prices followed again. “
Bitcoin network speed | Source: ByteTree
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 stalled mining operations to the point that many companies have shut down completely and are moving to other countries.
Reserves of the Bitcoin miners compared to the selling price | Source: ByteTree
Bitcoin held by miners stabilized and began to rise, Bennett suggested that the miners accumulate again and this could be interpreted as a signal that Bitcoin price may be about to stabilize.
Institutional dominance ratio to the Bitcoin price | Source: ByteTree
The institutional dominance rate also showed an increase from July 12th. This shows that major Bitcoin holders have been increasing their activity in the past few days while the price has stayed above 31,000.
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According to Cointelegraph
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