On-Chain Data Indicates Weakening Momentum for Bitcoin Prices
Bitcoin's price is under pressure, trading at $113,146 after falling 8.7% from its recent high of over $124,000. Despite a slight daily increase of 1.8%, volatility remains as investors assess market sentiment and on-chain metrics.
Key Insights
- Whale activity on Binance indicates weakening momentum, contributing to Bitcoin's inability to sustain highs.
- During July, Bitcoin traded between $118,000 and $122,000 in low volatility conditions.
- In mid-August, an increase in inactive deltas suggested that long-held coins were being sold again.
- Current Delta indicator shows near-zero levels, indicating a lack of buying pressure.
- A shift in behavior among large traders has been noted, with increased selling without new buyers emerging.
Market Sentiment
- The Coinbase Premium Index indicates accumulation despite declining prices, suggesting institutional buying during dips.
- The positive funding rate implies traders are still bullish, raising concerns about potential liquidity resets.
- Open interest in derivatives remains above market price, acting as resistance unless broken.
- Short-term dynamics show cautious sentiment alongside supportive long-term adoption metrics.
- Future movements depend on demand reasserting itself against recent profit-taking by whales.
