As long as the on-chain is anemic, bitcoin is safe, according to analyst
On-chain data for bitcoin and other cryptocurrencies was great over the past few days suffering from anemia, compared to what we saw during the crypto crash period. But the analyst and CEO of Cryptoquant believes this could be a good thing for bitcoin because it makes it “secure” from sell-side liquidity.
According to Young Xu, he has not seen any significant bitcoin on-chain activity in the past seven days, indicating a lack of liquidity and trading volume in the market. While the absence of volatility can be a painful thing to see and experience, some investors may be happy to own a relatively stable asset.
I haven’t seen any important #bitcoin On-chain activities since last 7 days.
Who knows the future but at least, $BTC As long as the on-chain is calm, the market is protected from sell-off liquidity.— Ki Young Ju (@ki_young_ju) 6 July 2022
Technical data on the market is also closely related to the absence of movement on on-chain indicators, as volume profiles and chart patterns suggest that Bitcoin has entered a long consolidation period.
The only notable data we saw earlier was the distribution of funds on wallets and increased sales activity related to the miner. The main source of selling pressure coming from miners is the price of bitcoin which does not allow them to keep mining operations profitable.
The only remarkable thing we can see in the miners’ activity is the difference between the profitability of experienced and novice miners. Reportedly, experienced miners are mostly selling their stake at a profit, while the miners who have recently entered the market are making losses.
According to analysts such as Peter Brandt, what we see in the cryptocurrency market today is the calm before the storm as Bitcoin’s extremely low volatility usually serves as a harbinger of massive price spikes in both directions.
At press time, bitcoin is trading hands at $20,475 over the past 24 hours and has lost 0.43% of its value.