Bitcoin Might Be Losing Momentum! How Are Traders Reacting?

  • Wallets were still expanding, but growth rates had decreased, particularly among those holding 10,000 to 10,000 Bitcoins. These larger groups often have a more significant impact on market dynamics.
  • Another concerning sign was the average transaction size. According to Glassnode, Bitcoin’s average transaction size experienced a monthly decline, reaching 518,646 in a seven-day average.
  • Bitcoin’s estimated volatility has also decreased over the past few months. Implied Volatility measures the market’s expectations for future price fluctuations. A decrease in implied volatility indicates that traders are expecting price stability or a more predictable period.

Growth in the Bitcoin network continues, but growth in whales has contracted; Volatility is falling but positive emotions are rising.

Bitcoin’s Price Continues Its Slow Movement

bitcoin-btc

Bitcoin, as of the time of writing, continued to hover around $25,700, testing the patience of its holders. Furthermore, recent data indicated an overall slowdown as the downward momentum persisted.

A significant indicator of this slowdown was the overall change in Bitcoin wallets over a 30-day period. Wallets were still expanding, but growth rates had decreased, particularly among those holding 10,000 to 10,000 Bitcoins. These larger groups often have a more significant impact on market dynamics.

Hence, the slowing momentum of Bitcoin could affect its performance and investor sentiment. Slower growth might deter new investors and speculators, potentially leading to a slowdown or a decline in the cryptocurrency’s price.

BTC-address-behaviour-by-BTC-balance

Another concerning sign was the average transaction size. According to Glassnode, Bitcoin’s average transaction size experienced a monthly decline, reaching 518,646 in a seven-day average.

A decline in this average transaction size typically indicates reduced activity or a change in the type of network transactions.

bitcoin-mean-transaction-size

Bitcoin has also faced challenges in the NFT sector. Activity related to Ordinals, in particular, has decreased across all major exchanges, reflecting a broader trend of declining interest.

Bitcoin-NFTs

How Are Traders Performing?

Traders have taken a bearish stance on Bitcoin, as indicated by the increasing put-call ratio. This ratio has risen from 0.42 to 0.47 in recent weeks.

With a higher put-call ratio, it suggests that more traders are betting on Bitcoin’s price falling rather than rising, reflecting a cautious shift in market sentiment.

Bitcoin-OI-Put-Call-Ratio

Additionally, Bitcoin’s estimated volatility has decreased over the past few months. Implied Volatility measures the market’s expectations for future price fluctuations. A decrease in implied volatility indicates that traders are expecting price stability or a more predictable period.

While this may be seen as a positive sign for some investors, it could also indicate a lack of speculative interest and contribute to Bitcoin trading within a narrower price range.

BTC-ATM-Implied-Volatility

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

Robinhood Mints 2,309 OpenAI Stock Tokens on Arbitrum with Ultra-Low Transaction Costs

On July 2, Robinhood's blockchain activity revealed significant developments...

Bitfinex Alpha: Bitcoin Price Consolidation Expected Without Major Macroeconomic Shifts

Bitcoin prices are expected to maintain a consolidation phase...

Insider Whale Boosts Bitcoin Short Position to $150M, Securing $3.23M Profit

On July 2nd, crypto analyst Ai Yi (ai_9684xtpa) reported...

Early Ethereum Investor Cashes Out $50M by Selling 501 ETH, Achieving 149x ROI

On July 2nd, blockchain analytics platform Lookonchain reported that...

Crystalfall Secures $2 Million Funding Backed by Avalanche and Leading Crypto Investors

On July 2, the blockchain-based action RPG Crystalfall successfully...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img