Bitcoin network health declines as new investors stop buying BTC


The price of Bitcoin has faced some turbulence over the past few days and weeks, and buyers and sellers have not been able to catalyze a clear two-way dynamic.

Earlier this week, the bulls roared as they sent the crypto towards $ 10,800, but resistance just above that price point slowed its rise, preventing BTC from testing $ 11,000.

After a brief period of consolidation, the cryptocurrency finally started to move sideways, before facing selling pressure yesterday that brought its price down to a low of $ 10,500.

While it subsequently rebounded from those lows and traded sideways since, it’s important to note that the health of the cryptocurrency network has declined over the past week.

This is due to the lack of new entrants to the Bitcoin network, and its turbulent price action is likely to hamper its adoption by new users and investors.

Until there is more clarity regarding the price of the cryptocurrency, you may continue to experience a decline in fundamental strength.

Bitcoin price action creates air of uncertainty among investors

Over the past few days and weeks, the price of Bitcoin has struggled to gain momentum in either direction.

It has mostly consolidated between $ 10,200 and $ 11,200, and until one of those levels decisively breaks, its outlook remains unclear.

“While trade liquidity has declined due to the decline in foreign currency deposits, transaction liquidity has increased due to an increase in the volume of BTC transferred to the channel,” they explained.

Until Bitcoin determines its medium term trend, you can continue to watch your liquidity plummet.

Glassnode: network health decreases due to lack of new users

In its latest weekly update, Glassnode explained that the health of the Bitcoin network has also been declining since last week, which is mainly due to the weakness of its “ network growth ” category.

“The health of the network went from a score of 74 to 64 points in week 39, down 13.5%. The network growth sub-category lost 8 points due to a decrease in the number of new users joining the Bitcoin network. Meanwhile, network activity fell by 10 points, as the number of BTC transactions also declined.

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