Recent on-chain analysis reveals a declining amount of Bitcoin (BTC) transactions with a value of over one million dollars. According to analyst Ali, this could signify a diminishing level of trading activity among large BTC holders, as well as a potential shift in market sentiment. At the time of writing, BTC is trading at around $28,000, with a 24-hour loss of 1.62%.

The crypto attempted to breach the $30,000 level on Sunday but was met with fierce selling volume, resulting in a 4% drop and a close at $29,233.21. The coin then dropped below the $28,600 level yesterday, with bears now aiming to break the $27,000 line. To avert a further drop, bulls will need to defend the current $27,845 minor support level.

In addition, BTC’s daily trading volume has decreased by 11.45% over the last 24 hours, totalling around $16 billion. This indicates decreasing liquidity in the market. It is also worth noting that BTC’s weekly performance is still in the green at +2.05%, likely due to recent announcements from institutional investors such as MicroStrategy, which have helped to buoy the coin’s prices.

This trend of fewer whale transactions could have a number of implications, whether positive or negative. Although traders should take due caution when interpreting on-chain metrics, they can use the data to inform decisions regarding where they believe the market is heading in the short-term. It remains to be seen whether BTC will rebound in the coming days, or if the coin continues its downward slide.



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