The on-chain data for Bitcoin and other cryptocurrencies over the past few days has been quite anemic compared to what has been seen in the CRypto crash in recent times. CryptoQuant’s CEO reckons it could be a good thing for Bitcoin as it makes BTC safe from sell-side liquidity.
According to Young Ju, BTC has not seen any significant on-chain activity on Bitcoin in the last seven days, which shows the lack of liquidity and trading volume in the market. While the absence of volatility is good for some investors, since they hold a relatively stable asset, this state of affairs is painful for others to observe.
The technical data in the market also correlates strongly with the absence of movements in the on-chain indicators, as volume profiles and chart patterns indicate that Bitcoin is going through a longer consolidation phase.
The only notable data was the distribution of funds on miner-related wallets and increasing sales activity. The main source of selling pressure emanating from miners is the price of Bitcoin, which does not allow them to keep the mining operation profitable.
The only thing that can be seen in the activity of miners at the moment is the difference between profitability of experienced and new miners. According to some reports, experienced miners usually sell their stocks for profit, while new ones who have only recently entered the market have to accept losses.
According to veteran trader Peter Brandt, what we are currently seeing in the crypto market is the calm before the storm, as the extremely low volatility of Bitcoin usually acts as a harbinger of massive price spikes in both directions.
