CoinNess Analysis: BTC May See Correction Due To The Shrinking On-Chain Data
Citing the Bitcoin analysis by Jins, the in-house cryptocurrency analyst at CoinNess.com, starting from September 16, BTC traded in bi-directional volatility and was suppressed by the $10,000 level with breakthrough signals being not clear. At the same time, there has been a significant retracement of the trading volume on the chain, which has also continuously prompted the correction expectations of BTC. Meanwhile, the number of active addresses on September 20 dropped significantly to 797,000, indicating that the number of active trading investors was not large. At the same time, the number of whale transactions (over 100 BTC at a single order) decreased to 407 and 404 on September 19 and September 20 respectively, which means that the major investors' transactions are obviously insufficient. It indicates that the current correction of BTC is expected to strengthen. In particular, the daily trading volume on the chain dropped from 4.14 million BTC on September 17 to 2.36 million BTC on September 20. Therefore, it is expected that the short-term market performance of BTC may also be affected, and the price correction space will be relatively enlarged.
BTC is still running above the 10-day moving average, and the fluctuation range has not yet expanded. However, the recent BTC volatility is relatively small, and the price may continue to test the 120-day moving average after correction in the form of range fluctuations. Therefore, trading strategies during this week should not be aggressive.
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