• Bitcoin (BTC) price is struggling to head towards the crucial resistance close to $27,500 due to a lack of bullish volume.
• On-chain indicators suggest traders are opting out of the network, with the number of unique BTC addresses reaching a 22-month low and the supply on exchanges dropping.
• At the same time, Bitcoin’s 60-day annualized volatility has reached historical lows, with a potential for a 50% crash if history repeats itself.
This article discusses how top indicators suggest that traders have moved out of Bitcoin and whether or not BTC price will remain stuck below $28,000. It also looks at how the contemporary tokens have taken over from primitive tokens in terms of market interest and how this could be impacting Bitcoin’s price movements. Additionally, it examines on-chain data such as the number of unique BTC addresses which have dropped to a 22-month low and other metrics such as supply on exchanges and 60-day annualized volatility which are at their lowest levels in years. A potential 50% crash is mentioned if history repeats itself.
Unique Addresses Dropping
According to an on-chain platform called Santiment, there has been a major drop in some fractals of Bitcoin that suggests traders are opting out of the network. The unique BTC address that interacts with the Bitcoin network has dropped to a 22-month low; now there are less than 800,000 daily unique addresses transacting on the network when once it soared above 1.1 million. This indicates that market participants may no longer be interested in Bitcoin as they focus on newer tokens instead which can offer higher returns in fewer days due to their use cases and fundamentals being unknown yet attractive to investors.
Volatility at Historical Lows
At the same time, according to data from an on-chain platform Intotheblock, Bitcoin’s 60-day annualized volatility has fallen below 40% for only 8th time in 5 years indicating that things may soon take off for BTC again if history were to repeat itself since prior times such conditions marked gains up by 46% followed by crashes down by 50%. This means that if this pattern continues then we should expect more upside gains for BTC short term rather than staying stuck below $28K range where it currently trades at around $26K – $27K levels across different exchanges worldwide.
Supply Dropping & What Does it Mean?
In addition to these metrics indicating trader’s movement away from Bitcoin (BTC), another indicator worth noting is supply; its supply on exchanges has also dropped heavily suggesting some faith among traders investing long term while holding out their token from exchanges instead of trading them actively through market speculation activities which could prove profitable but risky too depending upon your level of expertise within crypto markets . This demonstrates a sense of optimism amongst investors who think prices will rally back up big time soon enough so they don’t need to participate actively in markets right now thus reducing their exposure riskwise while not missing out any opportunity either when prices do start surging upwards again as expected by many experts within cryptocurrency space recently .
To sum up , all these indicators suggest lowered interest by market participants over star crypto asset i.e.,Bitcoin (BTC) which may heavily impact prices negatively in coming days unless some positive news comes forth or massive buying pressure arises pushing prices towards much higher targets like $30K plus region but until then ,we can expect sideways action mostly keeping value between current range near about $26K-$27K levels .