Bitcoin Drama: Is It Stuck in a Never-Ending Loop? 🤔💸

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So, here we are, folks. Bitcoin, the big cheese of cryptocurrencies, has been stuck in this tiny little range since February. It’s like watching paint dry, but with more zeros. Buying? Selling? Nah, it’s just sitting there, like a kid who refuses to get off the couch. 🙄

On-chain data is suggesting that this snooze-fest might just keep going because, guess what? The Bitcoin network is losing steam. Shocking, right? Who would’ve thought?

Bitcoin: The King of Sideways Movement? 👑

According to some analyst named Avocado_onchain (seriously, who names themselves that?), Bitcoin’s network activity is on a steady decline. It’s like a bad sitcom that just won’t get canceled. If this keeps up, we might be looking at another long, drawn-out consolidation phase, just like March 2024. Great, just what we need!

Avocado’s got some data to back this up. Apparently, the number of daily active wallet addresses is dropping faster than my enthusiasm for this market. Since February 1, it’s down 2%. Who knew wallets could be so lazy?

Fewer active wallets mean less demand. It’s like a party where nobody shows up. And when nobody shows up, prices tend to drop. Shocking revelation, I know.

And wait, there’s more! Avocado also mentions that the number of UTXOs is decreasing. It’s like watching a slow-motion train wreck. The decline is reminiscent of the correction period in September 2023. What a coincidence!

UTXO tracks how much Bitcoin is left after a transaction. Fewer UTXOs mean fewer coins moving around, which means investors are just holding onto their coins like they’re some kind of precious artifact.

“If this trend continues, we could see signs of investor exodus similar to the market cycle peak of 2017. But hey, just because UTXOs are down doesn’t mean the party’s over. Other indicators still suggest a bullish outlook,” Avocado writes. Sure, buddy, keep dreaming!

Bitcoin: Will It Hold or Just Break Down? 🤷‍♂️

As of now, BTC is hanging around the support line at $95,527. If the network activity keeps dropping, we might see it tumble below this level. In that case, we could be looking at a drop to $92,325. Fantastic!

But wait! If the market decides to wake up and buying pressure kicks in, we might see a rally toward $99,031. If it manages to pull that off, who knows? It could even reach $102,665. But let’s not hold our breath, shall we?

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2025-02-24 16:23