The Bitcoin market has continued to face downward pressure over the past few months, despite the fact that the average Bitcoin investor is still in profit.
However, short-term holders remain significantly underwater on their investments, posing a potential risk to the market in the near term.
Looking at the Bitcoin 2-month chart, the TD Sequential indicator has flashed a sell signal, suggesting a potential correction ahead. If the crucial $51,000 support level fails to hold, Bitcoin could see a drop to as low as $40,600.
Adding to the bearish outlook, active addresses on the Bitcoin network have hit new lows in 2024. The number of active addresses is now at the same level as it was three years ago, when Bitcoin was trading around $45,000. This decline in network activity may be an indicator of waning interest or participation in the market.
The Bitcoin spot ETF market has also been under pressure, with net outflows totaling $288 million on September 3rd alone. This marks five consecutive days of net outflows, highlighting the ongoing selling pressure in the market. Grayscale’s Bitcoin Trust (GBTC) saw a net outflow of $50.395 million in a single day, while Fidelity’s FBTC recorded a significant net outflow of $162 million. Currently, the total net asset value of Bitcoin spot ETFs stands at $52.689 billion.
As the market grapples with these headwinds, all eyes are on the $51,000 support level. If it breaks, Bitcoin could face further declines, making the next few weeks critical for market participants.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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