Bitcoin (BTC) experienced significant volatility last weekend with prices soaring to $117,000, then rapidly dropping back to $111,000, demonstrating instability in market sentiment.
The cryptocurrency market is currently witnessing a decline in buying momentum, along with weakening trading demand and on-chain activity, indicating that investors are shifting from excitement to caution.
MAIN CONTENT
BTC prices fluctuated significantly, from $117,000 to $111,000 in a short time.
Buying momentum in the spot market is weak; trading volume is stable but buyer confidence is declining.
On-chain data and futures markets both indicate a decline in activity and investment demand.
How did Bitcoin prices fluctuate last weekend?
Bitcoin prices peaked at $117,000 last weekend, but quickly dropped back to $111,000, indicating strong volatility, especially in the short term.
Data from Glassnode shows increasing instability in cryptocurrency market sentiment, reflected in technical indicators and trading statistics.
What signs does the spot market show about the next trend?
Buying momentum in the spot market has clearly weakened as RSI approaches the oversold region, accompanied by increased selling pressure. Trading volume remains stable but investor confidence is negatively affected.
Combining these factors, market participants tend to maintain a more cautious attitude, wary of price volatility.
How do futures and ETFs affect the current developments?
In the futures market, leverage has decreased, and funding rates have increased, signaling weakened speculative demand. ETFs trading in the U.S. recorded outflows of up to $1 billion, with significant reductions in institutional volume and demand.
These figures reflect a decrease in interest from large investors, directly affecting liquidity levels and market stability.
What noteworthy insights do on-chain data provide?
On-chain data shows that the number of daily active addresses and transaction fees have declined, along with a decrease in network usage. However, on-chain transfer volume has increased slightly, mainly due to price fluctuations.
This demonstrates a cooling trend in actual activity on the Bitcoin network, consistent with warnings that the market is shifting to a cautious phase.
"Instability in liquidity and technical indicators is a sign that the cryptocurrency market needs a new balancing phase, or will undergo further adjustments."
– Glassnode, Bitcoin Market Analysis Report, August 2024
Frequently Asked Questions
What does the drop in Bitcoin price from $117,000 to $111,000 mean?
The developments indicate significant volatility and market sentiment is shifting from excitement to caution, reducing short-term buying momentum.
How does RSI near the oversold region affect trading?
RSI near the oversold region is a warning of increased selling pressure, which could lead to further price declines without support from buyers.
What does decreased leverage and funding rates in the futures market mean?
Decreased leverage and high funding rates indicate weak speculative demand and cautious investors, reducing the likelihood of significant volatility.
Why are ETFs trading in the U.S. experiencing significant outflows?
This shows that institutional investors are gradually losing confidence or are waiting for more positive developments before returning to the market.
What impact does reduced on-chain data have on Bitcoin prices?
Reduced on-chain activity reflects low actual usage and transaction demand, weakening price support.
Source: https://tintucbitcoin.com/glassnode-nha-dau-tu-tu-hung-sang-than-trong/
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