- Bitcoin network activity has been on a downward trend since mid-September.
- Despite recent headwinds, mining activity on the Bitcoin network continues to grow.
Since the price fluctuates within a narrow range, Bitcoin’s [BTC] Network activity has witnessed a consistent decline since mid-September, data from the chain shows CryptoQuant revealed.
Read Bitcoin’s [BTC] Price forecast 2023-24
The coin’s transaction count, which measures the unique number of transactions executed on the Bitcoin network as assessed on a seven-day small moving average, has fallen to its lowest level since January.
According to data from CryptoQuant, there were 266,000 on October 13, a drop of 55% since September 20.
Source: CryptoQuant
In a new report, pseudonymous CryptoQuant analyst MAC_D explained the reason why BTC experienced a drop in the number of daily transactions. According to the aalyst, this was because “fewer new investments entered the crypto market, resulting in less liquidity and therefore less price volatility.”
When a crypto asset records a drop in the number of daily transactions, it is usually due to a drop in the number of daily active addresses on its network. BTC’s number of unique addresses, observed on the same seven-day small moving average, has fallen by more than 15% since September 19.
Furthermore, the daily number of coins transferred on-chain between BTC holders is currently the lowest since December 2022. According to MAC_D:
“The total number of BTCs (Tokens Transferred,14MA) transferred shows that there has been no meaningful shift between whales and institutional investors, indicating that the likelihood of a rally in the near future is low.”
However, despite the consistent decline in network activity in recent months, mining activity on the Bitcoin network has remained optimal. Labeled as “indicators of the fundamentals of the BTC network,” MAC_D noted that BTC’s hashrate and mining issues are “trending upward and remain healthy.”
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) ETH Could Double (With 393.23 million TH/s recorded on October 13, the BTC network hashrate has increased by 42% since the beginning of the year. As for network issues, it has also increased by 63%, data shows CoinWarz showed.
Source: CoinWarz
The market continues to consolidate
At the time of writing, BTC exchanged hands at $26,857, according to data from CoinMarketCap. With a Choppiness Index value of 56.65 observed on the daily chart at the time of writing, there was no clear trend in the price direction.
How much is 1, 10 or 100 BTC worth today?
However, while the market remained in a moderate state of turmoil, it is crucial to point out that the coin’s Parabolic Stop and Reverse (SAR) indicator was above the price. This indicator identifies potential reversal points in an asset’s price direction.
When the dots that make up the indicator are placed above the price, it indicates a downtrend. Furthermore, when these points are close together, it suggests that the trend is strong.
Source: BTC/USDT, TradingView
