Bitcoins network health is diving low as new investors are hindering the purchase of BTC

  • This week when BTC witnessed the inflow of selling pressure, the bulls roared up towards $10,80
  • The Glassnode stated that the network health of BTC declined by 10 points, 74 to 64 points this week, with a decrease of 13.5%
  • According to Glassnode’s report, due to lower exchange deposits, the trading liquidity decreased, and due to the increase of Bitcoins transferred on-chain volume the transaction liquidity rose

Bitcoin’s price has been enduring instability throughout the past week. The traders are unable to cause any clear momentum in any direction. This week when BTC witnessed the inflow of selling pressure, the bulls roared up towards $10,800, but struggled just above this price level, and slowed down to stop BTC from testing $11,000.

After unifying for a short period, the currency before facing selling pressure, on Tuesday BTC set its price dived down to lows $10,500. Due to the lack of freshers to the BTC network, it is noted that the network health has been declining over past weeks. It may continue to see this decline until there’s more clarity.

Glassnode’s study of the network

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GlassNode’s weekly report explained the network health of Bitcoin, which is declining over the past week. 

The Glassnode stated that the network health of BTC declined by 10 points, 74 to 64 points this week, with a decrease of 13.5%. Due to the decline in the number of freshers joining BTC network, a loss of 8 points is seen in the subcategory of network growth. Meanwhile, the number of transactions also tear down, which causes a drop of 10 points in the network activity.

Investors are uncertain due to the price action of Bitcoin

It is noted that the trading liquidity on exchanges is trending lower as of last week’s record, According to Glassnode’s report, due to lower exchange deposits, the trading liquidity decreased, and due to the increase of Bitcoins transferred on-chain volume the transaction liquidity rose. However, the on-chain transaction liquidity is trending higher, and it may continue to watch its liquidity diving until BTC determines its mid-term trend.

Bitcoins price can accumulate in any direction which cannot be predicted as per last week’s report. According to NewsBTC, Bitcoins outlook will remain unclear until one of the consolidating prices of last week ($10,200 and $11,200), decisively breaks down. 

We may conclude that if in near-future Bitcoin makes a trend-defining move the sharp which is seen across the transaction volume, joining of users, and fundamental weaknesses which are mounting some liquidity points could rapidly shift.

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Ritika Sharmahttp://www.thecoinrepublic.com
Ritika Kumari Sharma is an Economics Honors graduate from the University of Calcutta. She is completely into finance and believes that cryptocurrencies are the future. She is an enthusiast learner about the cryptocurrency and blockchain technology.

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