{"id":299238,"date":"2021-07-15T00:00:00","date_gmt":"2021-07-14T21:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/record-low-bitcoin-velocity-suggests-btc-may-move-to-the-downside\/"},"modified":"2021-07-15T00:00:00","modified_gmt":"2021-07-14T21:00:00","slug":"record-low-bitcoin-velocity-suggests-btc-may-move-to-the-downside","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/record-low-bitcoin-velocity-suggests-btc-may-move-to-the-downside\/","title":{"rendered":"# Record low Bitcoin velocity suggests BTC may \u2018move to the downside\u2019"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3373a73c298\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3373a73c298\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/record-low-bitcoin-velocity-suggests-btc-may-move-to-the-downside\/#Bitcoin_transactions_decline\" >Bitcoin transactions decline<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/record-low-bitcoin-velocity-suggests-btc-may-move-to-the-downside\/#Bitcoin_velocity_falls_to_record_lows\" >Bitcoin velocity falls to record lows<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/record-low-bitcoin-velocity-suggests-btc-may-move-to-the-downside\/#Miners_at_last_show_some_signs_of_accumulation\" >Miners at last show some signs of accumulation<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Record low Bitcoin velocity suggests BTC may \u2018move to the downside\u2019 <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>In the early hours of July 14, Bitcoin price took a surprise hit to $31,550 before slowly recovering back above $32,900 in the morning session.\u00a0<\/p>\n<p>The swift drop near the crucial $30,000 resistance raised alarms among bulls and bears and whilst the $30,000 to $32,000 level continues to function as a support level, a recent market update from ByteTree CEO James Bennett paints a mixed picture of what may be in store for BTC.<\/p>\n<p>According to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/youtu.be\/avV4ZS4LLA4\">analysis from Bennett<\/a>, the price of Bitcoin has stabilized near the $34,000 level due to a reduction in miner selling and an increase in accumulation, but he also warns that several metrics show that decreased activity on the network hint that BTC is still in a neutral zone where there is a reduced <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>etite from key players. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bitcoin_transactions_decline\"><\/span>Bitcoin transactions decline<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to Bennett weekly Bitcoin transactions have been in a sharp downturn since April and now sit near 1.48 million transactions which is down from the Jan. 9 high at 2.57 million. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-07\/5dea97dd-c9c8-4403-aae8-1e2e46a11c0d.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin transaction count 1-week cumulative, rolling. Source:\u00a0<\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/terminal.bytetree.com\/\"><em>ByteTree<\/em><\/a><\/figcaption><\/figure>\n<p>As a result of the current market downturn and drop in transactions, the total value transacted on the Bitcoin network has fallen to $23.6 billion, the lowest level seen since December 2020.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-07\/6031e846-3f51-42fb-a80e-97f438e38d12.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin total transaction value 1-week cumulative, rolling. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/terminal.bytetree.com\/\"><em>ByteTree<\/em><\/a><\/figcaption><\/figure>\n<p>Bennett said that due to the decline in on-chain activity: <\/p>\n<blockquote><p>\u201cIt\u2019s unlikely that Bitcoin will see its next price move up and it may even see a move to the downside.\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Bitcoin_velocity_falls_to_record_lows\"><\/span>Bitcoin velocity falls to record lows<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bitcoin velocity hit an all-time low of 195% on July 11, a significant decline from its recent high of 593% on May 23. The velocity is \u201ca non-price indicator and measures the vibrancy of the Bitcoin network\u201d <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ByteTree\/status\/1415307328954458112\">according<\/a> to Bennett.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-07\/cc11fae2-5af0-4d28-9492-2329ec54de02.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin network velocity. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/terminal.bytetree.com\/\"><em>ByteTree<\/em><\/a><\/figcaption><\/figure>\n<p>Bennett said: <\/p>\n<blockquote><p>\u201cIn the second half of last year, July through to December, velocity was picking up and subsequently price followed. As velocity has fallen through the year, price has followed again.\u201d<\/p><\/blockquote>\n<p><strong><em>Related<\/em><\/strong><em>: <\/em><em>BlackRock CEO signals low demand for crypto from long-term investors<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Miners_at_last_show_some_signs_of_accumulation\"><\/span>Miners at last show some signs of accumulation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>One positive sign in the market is the recent uptick in miner accumulation. This figure had dropped in recent months due to China cracking down on mining operations to the extent that many have completely shut down and are in the process of relocating to other countries. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-07\/5e0696c3-2a55-4968-bb6b-04a8498b74d0.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin miner inventory vs. price. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/terminal.bytetree.com\/\"><em>ByteTree<\/em><\/a><\/figcaption><\/figure>\n<p>As the BTC inventory held by miners stabilized and began to tick upward, Bennett suggested that miners are once again accumulating and this can be interpreted as a signal that Bitcoin price could be in the process of stabilizing.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-07\/bf34fdf9-9c1a-4864-a8b7-3426bf00c3a9.jpg\"><figcaption style=\"text-align: center;\"><em>Institutional dominance ratio vs. BTC price. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/terminal.bytetree.com\/\"><em>ByteTree<\/em><\/a><\/figcaption><\/figure>\n<p>The Institutional Dominance Ratio, a measure that monitors the top fifth quintile of the Bitcoin heat map, also shows an increase beginning on July 12. This suggests that large Bitcoin holders have increased their activity in the past couple of days while the price of Bitcoin has held above $31,000. <\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/record-low-bitcoin-velocity-suggests-btc-may-move-to-the-downside\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Record low Bitcoin velocity suggests BTC may \u2018move to the downside\u2019 &#8221; In the early hours of July 14, Bitcoin price took a surprise hit to $31,550 before slowly recovering back above $32,900 in the morning session.\u00a0 The swift drop near the crucial $30,000 resistance raised alarms among bulls and bears and whilst the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":299239,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDcvZjVjZGFmZDktMjA0OC00ODI5LTkyN2MtMzI5ODBmMGM4NTUzLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74989,74937,74863,75042,74880,73785],"class_list":["post-299238","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-mining","tag-bitcoin-price","tag-cryptocurrencies","tag-mining","tag-transactions","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/299238","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=299238"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/299238\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/299239"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=299238"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=299238"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=299238"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}