Miami, FL – Bitcoin’s potential decline may last for the next month or two, as indicated by the Delta Gradient analysis. Concerns about the demand for BTC have been raised due to a decrease in active addresses.
The Delta Gradient measures the relative change in momentum against the true organic capital of a cryptocurrency. A negative reading of -2.34 suggests that Bitcoin’s price could experience further decline in the coming weeks. This projected downtrend could last for a similar duration as previous trends.
Currently, Bitcoin is trading at $61,062, marking a 4.96% decrease in the last seven days. If the Delta Gradient continues to drop, the price of Bitcoin might fall below $60,000. The Realized Price of Bitcoin in response to the mentioned period rising above the spot value also aligns with this potential downtrend.
Additionally, the Network Realized Profit/Loss metric indicates that a significant number of transactions have resulted in losses. While this decline typically hints at a price increase, the dwindling activity on Bitcoin’s network raises concerns about a notable decline in demand for the coin.
Moreover, the decreasing number of active addresses, currently at 694,000 compared to almost one million a few days ago, reflects a lower level of user activity. This trend could further contribute to a decline in demand for Bitcoin and its price.
Despite these signals, analyst Michael van de Poppe suggests that Bitcoin’s correction phase might soon come to an end. With a positive outlook for the coin, he anticipates that the correction will be relatively over soon. This perspective offers a contrasting view in light of the current market indicators signaling a potential downturn for Bitcoin.