Bitcoin’s Price Correction Could Extend for Months
Bitcoin’s Price Correction: Analysis and Insights
Key indicators from on-chain data suggest a prolonged downturn for Bitcoin holders. The Delta Gradient, a metric measuring momentum against a cryptocurrency’s organic capital, indicates a potential decline lasting one to two months. This negative reading, currently at -2.34, implies a continued downtrend for Bitcoin’s price.
The recent decrease in active addresses to 694,000, down from nearly one million, raises concerns about diminishing demand for BTC. Typically, a decline in active addresses signifies reduced user interaction with Bitcoin, leading to a drop in demand for the coin.
The Network Realized Profit/Loss metric, reflecting the value of transactions realizing profit or loss, stands at -1.92 million. This negative figure suggests that a significant portion of on-chain transactions ended in losses, potentially impacting prices.
While the decline in demand may continue to put pressure on Bitcoin’s price, analyst Michael van de Poppe believes the correction may soon come to an end. Van de Poppe noted a positive weekly candle for Bitcoin, indicating a potential turnaround. He expressed optimism, stating, “We didn’t get the most obvious deep corrections in previous cycles either.”
Despite mixed signals on the charts, with some metrics pointing to further declines and others suggesting a possible reversal, the overall sentiment remains cautious. The evolving landscape of on-chain data and market dynamics continues to shape the trajectory of Bitcoin’s price in the near term.
As the market navigates through these fluctuations, investors and analysts closely monitor key indicators to gauge the resilience and potential direction of the world’s leading cryptocurrency. The coming weeks are poised to offer further insights into Bitcoin’s price movements and the broader cryptocurrency market landscape.
