As the bitcoin-traders-can-expect-in-bear-market/” rel=”nofollow”>The bear market continues to persistanalysts have weighed in the decline of bitcoin-halving-a-key-role-in-price-discovery/” rel=”nofollow”>flagship cryptocurrency, bitcoinand the cryptocurrency market, by extension. This time, other The crypto analyst has explained what is influencing the fall in the price of bitcoin.
Factors causing the decline of btc
bitcoin fell noticeably below the $27,000 level on October 12. Address this decline in a way recent episode On the ‘Cheeky crypto‘ YouTube channel, crypto analyst Nick noted that there wasn’t much to say in the news and that the only thing that could have affected bitcoin‘s decline was the bitcoin–crypto-see-unexpected-boost/” rel=”nofollow”>US inflation datawhich was recently published with the CPI rising more than expected.
He then analyzed key on-chain metrics that could have affected the price of bitcoin. According to data, it stopped from bitcoin-value/” rel=”nofollow”>Cheeky crypto SiteThere were 903,210 active addresses in the last twenty-four hours (he posted the video on October 12).
The data also showed that 610,686 active addresses received bitcoin during that period, and 560,331 active addresses sent bitcoin during the same time period, equivalent to 265,000 transactions. However, what was more interesting was the fact that only 23 million addresses held btc out of the total 48.7 million existing addresses.
He said that these figures were important to give an idea of crypto-adoption-interest/” rel=”nofollow”>The bitcoin Adoption Rate since it could easily be assumed that almost all existing bitcoin addresses contained btc. Meanwhile, less than half did so.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/10/Crypto-Analyst-Analyzes-Factors-Behind-Bitcoin-Price-Drop" alt="Tradingview.com bitcoin Price Chart” width=”2804″ height=”1746″ loading=”lazy”/>
btc price continues to fluctuate | Source: BTCUSD on Tradingview.com
More selling pressure for bitcoin
As for another factor that could be causing the drop, he noted that retail investors had been selling in recent days. However, the positive side, as Nick highlighted, is that this sell-off suggests that bitcoin-and-other-crypto-funds-see-inflows/” rel=”nofollow”>institutional investors They are piling up once again, considering they once threw their tokens to these retail investors.
Additionally, 108 wallets contain more than 10,000 btc. These wallets, which Nick labeled the “master manipulators” of the btc price, are also experiencing a similar liquidation trend, as these wallets are down 8.47% over the last 180 days, suggesting they are selling off. “aggressively”.
In the chart he shared, you can see that the trend dates back to April 2023 (the peak accumulation of these wallets), when they began to cool down and unload some of their holdings on the market. His analysis suggests that there could be a bigger picture regarding The decline of bitcoin more than any immediate factor.
Despite this drop and the number of liquidations that have occurred, Nick remains optimistic that bitcoin could end this month in the green. october is bitcoin-seasonality-sell-in-may-and-go-away/” rel=”nofollow”>reported to be one of the best performing months for bitcoin, with the crypto token ending October in the green for the past five years.
Featured image from The Independent, chart from Tradingview.com
