Key Takeaways
- Bitcoin’s price trades around key support, as the price could suffer a potential decline.
- Crypto experts question the current Bitcoin rally, despite the price trading above $ 100,000 and the presence of institutional investors.
- The Bitcoin rally lacks real on-chain presence, as data suggests that major activities are taking place on centralized exchanges.
Bitcoin is currently holding above $100,000 following its strong rally to new all-time highs around the $111,700 region. However, the piece has struggled, hitting an 8% price decline, as the price of Bitcoin in the past few days has struggled to show bullish price action, trading around the key support zone.
Despite such price action in the last few weeks, experts and traders have expressed displeasure over the significant drop in activity on the Bitcoin network, highlighting an unusually quiet state despite hitting new highs and trading above $100,000.
The transaction volume on the Bitcoin network, when compared to 2023 and 2024, has dropped significantly compared to past activities, from over 734,000 per day to a range of 320,000 to 500,000, a notable difference compared to past crypto bull cycles.
Although the price of Bitcoin appears strong, above $100,000, and institutional interest continues to rally, crypto experts believe the market is still trading strangely. Let us explore key factors.
On-chain Volume Decline
The recent decline in on-chain activities, with many Bitcoin spot and perpetual trades taking place on centralized exchanges, has highlighted a maturing market for Bitcoin, according to crypto experts. As institutional investors focus more on trading Bitcoin on centralized exchanges, a stark difference is evident when compared to past bull cycles, which witnessed strong volume in on-chain activities.
Additionally, crypto experts have identified a drop in Bitcoin social volume compared to past crypto bull runs, which typically saw rising social volume due to Bitcoin’s strength in creating new highs or rallies. However, the current bull market has lacked such factors.
While these factors have contributed to the recent price decline, some crypto experts believe the market is not in a bull market because of the constant struggle for Bitcoin in recent weeks. This price action could be replicating Bitcoin’s historical price struggles in June, as BTC has failed to perform in the same month.
Bitcoin Price Analysis
Source – BTC Price Chart From TradingView
Bitcoin’s price struggles continue, creating setbacks for altcoins as the price fell from a region of $106,000 to a region of $102,500. A price has retested its key support zone on several occasions, and the price could potentially break to the downside.
While the price has traded back into its key zone, there is a potential for the price to break down into lower regions, as smart money seeks to capture liquidity in these areas before forming a new bullish structure for a potential price rally to the upside.
With price headed into the weekend and low volume, crypto experts and investors will be paying attention to Bitcoin ahead of the coming week.
