Following the news of the FOMC and Sam Bankman-Fried’s manipulative plans to keep Bitcoin under $20K, traders are now experiencing fear about opening BTC positions. As a result, the BTC price has reached a stable zone near $26.8K. Currently, Bitcoin is facing short-term selling from holders, resulting in a failure to generate any surprising momentum above $28K. Hence, the dream of $28K is slipping further away as on-chain metrics indicate declining network activity and low volatility.
Only Miners Can Revive Bitcoin Price
On-chain data unveils a declining bullish hope for Bitcoin’s surge above $28K. CryptoQuant highlights that the main factor behind bearish outlook is the declining price volatility. A look at the charts for Active Addresses (SMA 7) and Transaction Count (SMA 7) reveals a significant uptick in Bitcoin ($BTC) deposits, withdrawals, and transactions in May of this year, due to the Ordinals. However, a sudden downturn emerged from September 19.
This decline signals a dip in Bitcoin network activity, primarily due to declined influx of new investments, which in turn lowers liquidity and price volatility. Moreover, a look at the total number of Bitcoin transferred reveals no change in balance between whales and institutional investors, suggesting that the hope for a bullish rally above $28K is low.
However, Bitcoin’s aim for a bullish rally above $28K is not impossible. CryptoQuant reveals that miners could play the savior role in pushing Bitcoin’s price from its present stance. The hashrate and mining difficulty, crucial metrics that show the fundamentals of the Bitcoin network, are currently surging and displaying robust health.
But we need to keep a close eye on these metrics, especially if we see a big jump in Bitcoin being moved around. At this moment, we might start to see bigger price changes, and Bitcoin could break free from its falling prices.
What’s Next For Bitcoin Price?
After holding steady at the support of $26,500, Bitcoin price witnessed a surge in buying demand and the price made a minor recovery rally toward its 23.6% Fib channel. Currently, the price is forming a ‘double bottom’ pattern. As of writing, BTC price trades at $26,820, surging over 0.2% from yesterday’s rate.
Currently, bulls are attempting to hold the price above the EMA20 trend line. If successful, bulls might aim to test buyers’ patience at $28K. A surge above this level will validate a rally toward $30K.
If BTC price fails to meet buyers’ demand at $28K, we might see a quick selloff and BTC price might drop toward $26K.
The declining 20-day EMA and the relative strength index (RSI) way below the midline hint at possible downward movement in the short term.
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