The on-chain data of Bitcoin and other cryptocurrency over the past few days was sluggish compared to the time before the crypto crash. The CryptoQuant CEO and analyst believes it is a good thing for Bitcoin because it keeps it safe from sale-side liquidity.
Young Ju claims that he has not seen any significant Bitcoin on-chain activity in the past seven days. This is indicative of the market’s lack of liquidity and trading volume. Although volatility is a frustrating thing to observe and experience, some investors may be content to have a stable asset.
For the past seven days, I haven’t seen any significant #Bitcoin activities on-chain.
The future is unknown, but the $BTC Market is protected from sell-side liquidity so long as the on-chain remains quiet.
– Ki Young Ju (@ki_young_ju) July 6, 2022
Technical data on the market correlates closely to the lack of movement on onchain indicators. Volume profiles and chart patterns indicate that Bitcoin is in a prolonged consolidation period.
We did not see any data other than the distribution of funds to miner-related wallets or rising selling activities. Miners are the main source of selling pressure. They cannot keep their mining operations profitable.
One thing that is notable in the activity of miners is the difference in profitability between veteran and newbie miners. According to reports, veterans are selling their holdings at a profit while newbie miners are losing money.
Analysts like Peter Brandt believe that what we see on the cryptocurrency exchange today is the calm before storm. The extremely low volatility of Bitcoin usually signals massive price spikes in either direction.
Bitcoin trades at $20,475 as of press time and has lost 0.43% in the past 24 hours.