This sentiment is reflected in the declining exchange-related on-chain volumes, indicating a cautious approach among market participants.
In a recent tweet, Glassnode noted that Bitcoin investors remain unconvinced in the short term, as exchange-related on-chain volumes have begun to languish.
Meanwhile, centralized exchanges continue to be the centerpiece venue for speculation activity and price discovery. Thus, an evaluation of on-chain volumes aggregated across these venues can be used to gauge investor activity and appetite for speculation.
According to Glassnode, an analysis of the 30-day/365-day momentum crossover for exchange-related inflows and outflows indicated that the monthly average volume has fallen significantly below the yearly. This highlights a drop in investor demand and less trading by speculators in the current BTC price range.
However, settlement volume is beginning to fall toward its yearly average, suggesting a marked cooling off of network usage and throughput. Overall, this remains a net negative observation.
The CVD indicator, which reflects the current net balance of market buying and selling pressure on the spot market, shows an increase in investor sell pressure over the last 90 days, adding to the downward price trend.
Despite the bearishness in BTC metrics, Glassnode noted that the Bitcoin Hash Rate is rapidly approaching new ATHs as the competitiveness of the mining scene and their conviction in the Bitcoin network grows.
At the time of writing, BTC was down 1.21% in the last 24 hours to $56,119.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
