Bitcoin ETF

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The post <a rel="noopener noreferrer nofollow" href="https://coinpedia.org/bitcoin/bitcoins-key-on-chain-metrics-hold-strong-despite-fear-of-etf-pump-slowdown-top-analysis-firm-reveals/">Bitcoin’s Key On-Chain Metrics Hold Strong Despite Fear Of ETF Pump Slowdown: Top Analysis Firm Reveals</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a>
There’s no doubt that bullish ETF news was the reason behind Bitcoin’s recent surge, sending its price above $35K. However, BTC price now faces a slight setback in maintaining its momentum following profit-taking sentiment among traders. According to on-chain data, Bitcoin shows robust health in key on-chain metrics, even as traders exhibit anxiety over the potential decline in ETF pump.
<h2 class="wp-block-heading" id="h-buyers-remain-bullish-despite-etf-pump-slowdown">Buyers Remain Bullish Despite ETF Pump Slowdown</h2>
Even as the SEC’s official nod for a spot Bitcoin ETF hangs in the balance, investor interest hasn’t faded, with continued Bitcoin purchases in anticipation of a substantial market rally post-approval. If an ETF is approved, experts are forecasting a jump in BTC prices beyond the $40K threshold, potentially setting a new high for 2023.
Presently, the BTC market is experiencing a slowdown, triggered by whales offloading Bitcoin assets worth over $20 million, a move that followed a dip in Bitcoin’s value from $34K.
<figure class="wp-block-image"><img decoding="async" src="https://lh7-us.googleusercontent.com/m2opUBZLY8E10mQFaUmUkDlM7DpnqDl3n7e1AL7tpBClI4IH0vKgEA0H6Gst2b_u0WTgdKxtewDQAwQWOS0kFpnFZ89kTcvrHdoRRWo4mtPPUvtf1yPheb-LuxneRVjGHEnPy9ThTIU79ihhO89UCQU" alt="">
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Despite this sell-off, the market didn’t experience a further downturn, due to a robust defense initiated by buyers at the crucial support levels. While it might appear that the hype surrounding the ETF-driven surge is declining, on-chain indicators tell a different story. According to data analytics firm Santiment, key on-chain metrics remain strong, suggesting that the current situation is more of a temporary market reaction than a long-term shift.
Bitcoin is witnessing its 3rd straight day in 1 million unique addresses transacting despite the recent drop, suggesting increased network usage. Bitcoin is also experiencing a significant movement of previously inactive tokens, a scenario often associated with bullish market conditions.
A decrease in the age of BTC investments indicates reduced coin dormancy, potentially increasing utility and market activity. As the SEC <a href="https://coinpedia.org/news/gensler-fuels-hope-for-bitcoin-etf-approval-says-8-10-applications-under-review/" rel="noopener noreferrer nofollow">is set for an imminent ETF approval</a>, holders are showing less interest in offloading their coins for further market potential.
<h2 class="wp-block-heading" id="what-s-next-for-btc-price">What’s Next For BTC Price?</h2>
After Bitcoin price faced a rejection above $35K, it initiated a downward correction and is currently aiming to meet sellers’ demand below 20-day EMA. Bears are dominating the price chart over the last few hours; however, bulls might soon defend the EMA line.
<figure class="wp-block-image"><img decoding="async" src="https://lh7-us.googleusercontent.com/qqBcbrJUTJ88cot0H6Cr7WtltJWVu3evatpgy1bXY7yjEhvZecvdjmI3VfszUq5EIou0zZbnfohIWRPScRmtrf-VuvjZqlc3R_N6-BPVat1gne0fRxJFf7hq8f9P0zvBVOWFaKarW2qEgoncc3djie8" alt="">
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The RSI trend line has dropped from its overbought region following the correction, holding a balanced battle between the bulls and bears. Currently, the crucial support levels to observe are at $31,900 and subsequently at $31,000.
These levels are expected to be protected by buyers. Should the support of $31.9K hold strong, and the price rebounds, there’s a possibility that bulls will once again attempt to send the price above $35K.
On the flip side, a decline below the $31,000 mark could suggest that the recent surge was for short-term, potentially luring investors into a bull trap. In this case, bears might gain control and consolidate the BTC price around $28K-$30K.

Bitcoin’s Key On-Chain Metrics Hold Strong Despite Fear Of ETF Pump Slowdown: Top Analysis Firm Reveals

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