147

Perfect storm brews for Bitcoin as on-chain transaction value drops to a 3-month low

Perfect storm brews for Bitcoin as on-chain transaction value drops to a 3-month low
Jordan
Major
6 months ago
2 mins read

On Wednesday, December 22, an intriguing indicator in terms of total Bitcoin (BTC) transactions surfaced following the digital assets’ recent substantial inflow.

Evidently, Bitcoin’s on-chain transaction value has fallen to a three-month low based on the hourly chart seven-day monthly average, according to the most recent data given by on-chain metrics platform Glassnode.  

Bitcoin transaction volume in BTC. Source: Glassnode

Glassnode tweeted:

“Transaction Volume (7d MA) just reached a 3-month low of 124,802.190 BTC. Previous 3-month low of 124,858.013 BTC was observed on 02 November 2021.”

Bitcoin’s trading volume below $6 billion

Interestingly, the transaction volume equates to just over $5.94 billion on the dollar chart. It’s worth noting that the last time Bitcoin’s transaction value was this low was when BTC was trading over $61,000 and just a week before it reached its all-time high.

Bitcoin transaction volume in USD. Source: Glassnode

What is particularly noteworthy while the transaction volume hits a three-month low is the fact that the Bitcoin market is in a struggle between bulls and bears as the leading digital assets aims to break above the crucial $50,000 barrier.

Indeed, Bitcoin is now experiencing different supply trends as it appears long-term holders are holding and accumulating, and miners are accumulating, according to the latest market data. Furthermore, Bitcoin supply is transitioning from a liquid to an illiquid state at a pace of 100,000 BTC each month, as seen in the chart below.

Bitcoin illiquid supply change (30d Moving Average). Source: Glassnode


Glassnode noted:

“Illiquid coins are those sent to an address with little history of spending, generally associated with investor accumulation, and bull market buyers.”

Bitcoin needs to break $50.5k to be bullish

Elsewhere, prominent crypto trading analyst Michael van de Poppe highlighted that leading cryptocurrency needs to break above $50,500 to say that we are back in bullish territory he stated:

“The first breakthrough has happened on Bitcoin. But, we still need to break enough levels to state that we’re bullish. Overall, a breakthrough at $50.5-51.5K and I’m convinced. Also, 2022 should become a great year overall.”

Currently, the flagship digital asset is trading at $48,699, up 0.05% on the day and 2.24%over the last week, with a total market cap of $920.8 billion.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Latest News

Join us on Twitter or Telegram

Or follow us on Flipboard Flipboard

Like the article? Vote up or share on your social media

Recommended content

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s

Jordan Major
Author

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.

AD