- Bitcoin’s 24-hour trading volume fell by more than 20% as the price moved slightly.
- BTC open interest increased, suggesting that the current price trend may last longer.
From Bitcoin [BTC] price has remained below $28,000 for quite some time. The slow price action has disappointed many investors.
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In addition, the latest reports suggest that the scenario could get worse. An analysis by CryptoQuant pointed to an interesting development regarding BTC deposits.
Bitcoin gets comfortably below $28,000
As mentioned earlier, the price of BTC has been falling for several weeks now. According to CoinMarketCapBTC’s price fell more than 1.5% in the past seven days.
In addition, the 24-hour trading volume also fell by 22%. At the time of writing, the king coin was trading at $26,383.26 with a market cap of over $511 billion.
Investor confidence in BTC is low
Tomáš Hančar, an author and analyst at CryptoQuant, published a analysis on May 25 revealed that the number of deposit transactions broke a historic 6-year low at the beginning of this month.
According to the analyst, a possible reason for this could be the aftermath of the FTX collapse.
Source: CryptoQuant
The price of Bitcoin could fall further
Another CryptoQuant analyst and author, gigisulivan, posted a analysis that suggested that the price of BTC could fall further.
He used the output age metric used to point out that there has been an increase in activity in the 3 to 5 year old group in recent weeks. The statistic was at its highest since early January, when it preceded a stronger move in subsequent weeks.
This could be an early warning sign of a further downtrend, according to gigisulivan BTC‘s price will be comfortably under $27,000.
Source: CryptoQuant
Is the decline inevitable?
A look at the statistics of BTC provided by CryptoQuant also supported the possibility of a downtrend. For example, net deposits of BTC on exchanges were high compared to the past seven days, suggesting that BTC was under selling pressure.
Bitcoin’s aSORP was also red. This statistic revealed that more investors sold at a profit. In addition, the number of active wallets used to send and receive coins decreased by -45.66% compared to a day ago, which is negative overall.
Source: Coinglass
Coinglass’s data gave more cause for concern as its findings were also bearish.
BTC open interest increased on May 24. Increasing open interest tends towards a continuation of that trend.
Given the current negative price movement of BTC, a further decline therefore seemed much more likely.
Read From Bitcoin [BTC] Price prediction 2023-24
Market sentiment remains bearish
Not just the stats, but also the market sentiment surrounding it BTC was worrying. After peaking, Bitcoin’s weighted sentiment drifted to the negative side.
While the currency’s social dominance was high, most of the assignments may have been negative. From Lunar CrushBTC’s bullish sentiments fell more than 44% in the past 24 hours.
Source: Sentiment
