2024

Bitcoin

<ul class="list-ic vertical">
 <li>1 <a>Bitcoin’s on-chain activity is approaching historic lows due to the dramatically slowed transactions in the last two months.&nbsp;</a></li>
 <li>2 <a>While some anticipate it as a bearish signal, others find it as an opportunity to accumulate more.</a></li>
</ul>
The crypto market is undergoing adjustments following the Bitcoin halving, with Bitcoin’s value dropping about 18% from its peak, teetering on the edge of falling under the key $60,000 support level.
Moreover, the on-chain activity for Bitcoin has been at its lowest in five years, and a slowdown in transactions has been observed since reaching new heights. While some view this as a sign of a potential downturn, others see it as a chance to buy more at lower prices.
Let’s delve into this and explore whether Bitcoin will continue to decline or if it will pivot and start to recover.
<h2 class="wp-block-heading" id="strong-on-chain-activity-drops-to-the-lowest-in-five-years-strong">On-Chain Activity Drops To The Lowest In Five Years!</h2>
Bitcoin’s on-chain activity, a measure of the total transactions recorded on the blockchain, is reportedly nearing historic lows, according to data from app.santiment.net. This downturn in activity has been observed in the two months following Bitcoin’s all-time high, suggesting a significant drop in trading activities.
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 <blockquote class="twitter-tweet">
 <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f4c9.png" alt="📉" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Bitcoin</a>'s <a href="https://twitter.com/hashtag/onchain?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#onchain</a> activity is approaching historic lows as traders have dramatically slowed transactions in the 2 months since its <a href="https://twitter.com/hashtag/alltimehigh?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#alltimehigh</a>. This isn't necessarily a sign of more <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$BTC</a> dips, but rather a signal of crowd fear and indecision. <a href="https://t.co/Tg5TpnVv4D" rel="noopener noreferrer nofollow">https://t.co/Tg5TpnVv4D</a> <a href="https://t.co/ldtv3FPVxA" rel="noopener noreferrer nofollow">pic.twitter.com/ldtv3FPVxA</a>— Santiment (@santimentfeed) <a href="https://twitter.com/santimentfeed/status/1789383542021169208?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">May 11, 2024</a>
 </blockquote>
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However, this trend is not necessarily indicative of an impending decline in Bitcoin’s price (BTC). Instead, it reflects a prevailing sentiment of fear and indecision among traders.
The hesitation to engage in transactions could be attributed to the uncertainty surrounding the cryptocurrency market, which often leads to reduced trading volumes during periods of market stress. The decrease in on-chain activity can be seen as traders exercising caution, possibly waiting for more stable market conditions before committing to new transactions. This cautious approach is a common reaction to the volatile nature of cryptocurrencies, where rapid price changes can occur unexpectedly.
Some may interpret low on-chain activity as a bearish signal. However, it’s essential to consider that market sentiment can shift quickly, and such metrics are just one of many factors influencing Bitcoin’s price.
Long-term investors may see this period as a chance to acquire more BTC. Others may choose to wait until the market’s direction becomes more apparent.
<h3 class="wp-block-heading" id="strong-technical-charts-suggest-more-bloodbath-ahead-strong">Technical Charts Suggest More Bloodbath Ahead?</h3>
From a technical point of view, the <a href="https://www.thecoinrepublic.com/2024/04/04/bitcoin-price-forecast-will-btc-break-below-the-60k-level/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin price</a> took a U-turn from the $65,000 level. It reapproached the lower boundary of the declining parallel channel observed on the daily chart.&nbsp; 
<a href="https://in.tradingview.com/chart/BTCUSD/03VptK1v-Bitcoin-s-On-Chain-Activity-Hits-Lowest-Since-2019-What-s-Next/" rel="noopener noreferrer nofollow"> </a> <a href="https://in.tradingview.com/u/Ritika_TCR/" rel="noopener noreferrer nofollow"> </a>&nbsp; <a href="https://in.tradingview.com/" rel="noopener noreferrer nofollow"> </a> 
It indicates increasing bearish dominance. The price is currently hovering above the psychological level of $60,000, which, if broken, could trigger more bloodbaths. The price may drop significantly toward the monthly lows of $56,000.
On the higher side, the 50-day EMA has turned out to be a resistance and could prevent the price from moving higher until the price hovers below it. The bulls need to surpass the 50-day EMA in order to reclaim a positive trend.
<h4 class="wp-block-heading">Disclaimer</h4>
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.

Bitcoin’s On-Chain Activity Hits Lowest Since 2019: What’s Next?

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