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

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

A Missed Moment with Cardano? Here’s Why Qubetics at $0.0212 Could Be Your Perfect Timing – Explore the Best Crypto to Join Now

If you’ve been regretting missing out on Cardano, Qubetics ($TICS) might just be the ticket…

29 minutes ago

Shiba Inu Price Clears Path To New ATH Of $2 As WallitIQ (WLTQ) Takes The Lead With A 23,000% Surge

The Shiba Inu price is on track to reach a new ATH of $2, while…

29 minutes ago

Best Crypto Presales to Watch This November: Get in Early on These Potential Breakout Coins

So, you’re on the lookout for the next big thing in crypto? Aren’t we all?…

4 hours ago

Robinhood Crypto Now Supports Solana Trading Again

Robinhood Crypto has expanded its U.S. platform with the addition of Solana, Pepe, Cardano, and…

9 hours ago

Missed Out on Chainlink Early Gains? This Layer-1 Project is Set to Explode to $15 After Mainnet Launch

If you’ve been following the crypto space, you already know that Chainlink (LINK) has been…

9 hours ago

This website uses cookies.