In an analysis recently published on X, Santiment, an on-chain analysis firm, reveals interesting data for Bitcoin. He explored key on-chain indicators that provide insight into the prospects for Bitcoin’s ongoing attempt to break the $28,000 level.
Evaluation of the “supply on exchanges” for Bitcoin
An important metric to monitor is “supply on exchanges,” which tracks the percentage of total Bitcoin supply that resides in centralized exchange wallets. When this metric drops, it indicates a tendency to withdraw from exchanges. It also generally signals long-term holding intentions among investors.
Conversely, a bullish trend means potential selling pressure as more cryptocurrencies are deposited into exchanges. Over the past month, the supply of Bitcoin on exchanges has steadily decreased. Accordingly, this indicates a clear outflow of coins from these platforms. This trend could ultimately contribute to the bullish momentum. However, its effect can be realized in the long term. On the other hand, it may become less directly related to the current price increase.
Examining “daily active addresses”
Another important metric to consider is “daily active addresses,” which measures the number of unique addresses participating in transaction activities on the Bitcoin blockchain. Unfortunately, this indicator has fallen to its lowest levels since the end of August. Accordingly, this shows that user interest in Bitcoin BTC is currently decreasing.
Historically, sustained price increases such movements typically require strong investor participation. Of course, such a situation depends on attracting the attention of a significant amount of traders. The recovery currently underway lacks the level of investor activity that has characterized successful rallies in the past.
Emphasis on uncertainty
Adding to the confusion, the $27,900 level represents a key resistance point. This level is in line with the average cost base of short-term holders, as highlighted by Maartunn. Bitcoin BTC’s last attempt to surpass $28,000 ran into difficulties. Additionally, the price dropped to $27,500.
In summary, Bitcoin has an ongoing struggle to break the $28,000 threshold. Accordingly, when we look at it as cryptokoin.com, it raises questions about its success in the near future. The decrease in supply in the stock markets indicates long-term upward potential. Additionally, the decline in daily active addresses reflects a decrease in current user interest. A combination of these factors and resistance at $27,900 are noteworthy. Bitcoin, on the other hand, creates a sense of uncertainty surrounding BTC’s immediate price trajectory. The cryptocurrency community will specifically look at the $28,000 level from now on. Exceeding this level will mean new highs for BTC.
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