While the cryptocurrency market continues to fluctuate with the developments in the sector Bitcoin The price strengthened its position above $40,000 with an unexpected move. However, some indicators show that this rise is slowing down.
While analyzing the supply-demand balance in the market, analysts stated that important metrics such as transaction volume, Balance Volume (OBV), Active Addresses and Number of Transactions in October were quite high. These metrics generally represent the excitement and density of transactions on the network.
However, since mid-November, the change in these indicators has become more clearly visible. Despite Bitcoin hitting a yearly high of $44,700, metrics tracking network activity have plateaued, mirroring levels observed in November. This cessation of network activity amidst higher prices indicates a potential scenario for a short-term correction in the market.
Market analysts are assessing the possibility of a pullback in Bitcoin’s value due to this stagnation in supply and demand dynamics. The horizontal movement observed since mid-November indicates an upcoming correction phase. Of particular interest is the observation that $38,000, which accounts for 61.8% of the monthly price range, is in line with the high witnessed in November. This convergence signals a critical level to watch, potentially serving as a support level should a correction emerge.
Experts warn that no rise is permanent in the cryptocurrency world, where volatility prevails. The recent fatigue in demand and transaction metrics could signal a natural pause in Bitcoin’s upward momentum, offering the digital asset a chance to breathe before potentially resuming its rise.