At this point in time, there might be only a few people who are actually bullish on Bitcoin apart from Michael Saylor. Since the crash of 19th May, recovery attempts have been faced by intense selling at resistance points. While the weeks that followed also accompanied buying at dips, this trend appears to have taken a back seat.
Instead of buying the dip, the retail crowd is now in anticipation of bullish signs to emerge as selling pressure grapples the market. But the situation is getting bleaker by the day and there seems to respite in the offing. With the crypto-asset so far failing to recuperate from its 50% drawdown from the April peak, the bear market narrative for Bitcoin has never been stronger.
According to the CEO of CryptoQuant, Ki Young Ju, it seems like the Bitcoin bear market is confirmed. He backed his argument with the latest trend that has been witnessed as whales were offloading their BTC to exchanges.
While admitting that there is no a single indicator that can tell the future for sure, the exec went on to add,
“I expect my BTC bearish bias won’t last long (maybe just a few weeks) because the market looks good in terms of supply/demand in the long term (e.g., Stablecoins ratio(USD) and SSR). So don’t get me wrong, I’m not saying it’s over.”
Meanwhile, CoinShares‘s latest weekly report also echoed a similar sentiment. It revealed that the digital asset investment products witnessed a third consecutive week of outflows summing up to a total of $79m in what is now the longest bear run in outflows since February 2018.
Bitcoin’s tense market conditions
The choppy on-chain dynamics did little help to support the price of Bitcoin. In terms of active addresses, the figures have dropped by 24% from the generally sustained peak of 1.16 million that was witnessed from March to early May this year. Currently, the addresses, however, stood at 884,000, a figure that was last seen a year back.
In addition to that, there has been a dramatic decline with respect to the USD value settled on the Bitcoin network which currently sits at -63% compared to the recent highs established in May. According to reports, Bitcoin is settling approximately $18.3B per day, thus suggesting an equivalent volume to Q1 2021.