The recovering market is slowly losing steam as the leading cryptocurrency Bitcoin has made little difference over the past 7 days.
Bitcoin stuck in a rut
Last week, after BTC fell more than 13% in just a few days, some hope was reignited as the price rallied 5.67% in the short term.
Unfortunately, Bitcoin fell behind shortly after. On Jan. 14, the price is 1.37% lower than the same $41,500 as on Jan. 7.
Concern is growing not only because Bitcoin is repeating price levels, but even many indicators are signaling a red candle.
The current downtrend is so strong that even the bulls can only sustain BTC’s consolidation.
Bitcoin Price Action | The source: TradingView
The second week of 2022 was the highest outflow in more than a year, totaling $207 million in digital assets. Bitcoin made up the largest part with a net outflow of up to $107 million.
Cryptocurrency Net Cash Flow | Source: CoinShares
Next is ETH at -$39 million, which is 1/3 of Bitcoin’s outflow.
In any case, investors do not seem to mind these developments, neither positively nor negatively. The number of active addresses in the chain remains at 950,000 and the network was only able to add 200,000 new investors in just over a week.
Quantitatively active bitcoin addresses | The source: Into the block
Obviously, this is not a good sign as in the case of Bitcoin without DeFi, investors are its only strength. When they lose their support, the ability to recover quickly is very difficult.
However, one positive observation is that BTC has not lost its HODLer. Selling activity was minimal and over 400,000 medium-term holders became long-term holders this month.
Long-term bitcoin holder | The source: Into the block
However, the royal mint cannot rely on this alone. The market must sustain a net flow close to neutral or positive, only then does Bitcoin stand a chance of challenging its next move down.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
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Market
Bitcoin will not recover until this happens
The recovering market is slowly losing steam as the leading cryptocurrency Bitcoin has made little difference over the past 7 days.
Bitcoin stuck in a rut
Last week, after BTC fell more than 13% in just a few days, some hope was reignited as the price rallied 5.67% in the short term.
Unfortunately, Bitcoin fell behind shortly after. On Jan. 14, the price is 1.37% lower than the same $41,500 as on Jan. 7.
Concern is growing not only because Bitcoin is repeating price levels, but even many indicators are signaling a red candle.
The current downtrend is so strong that even the bulls can only sustain BTC’s consolidation.
Bitcoin Price Action | The source: TradingView
The second week of 2022 was the highest outflow in more than a year, totaling $207 million in digital assets. Bitcoin made up the largest part with a net outflow of up to $107 million.
Cryptocurrency Net Cash Flow | Source: CoinShares
Next is ETH at -$39 million, which is 1/3 of Bitcoin’s outflow.
In any case, investors do not seem to mind these developments, neither positively nor negatively. The number of active addresses in the chain remains at 950,000 and the network was only able to add 200,000 new investors in just over a week.
Quantitatively active bitcoin addresses | The source: Into the block
Obviously, this is not a good sign as in the case of Bitcoin without DeFi, investors are its only strength. When they lose their support, the ability to recover quickly is very difficult.
However, one positive observation is that BTC has not lost its HODLer. Selling activity was minimal and over 400,000 medium-term holders became long-term holders this month.
Long-term bitcoin holder | The source: Into the block
However, the royal mint cannot rely on this alone. The market must sustain a net flow close to neutral or positive, only then does Bitcoin stand a chance of challenging its next move down.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
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