The price of Bitcoin continues to hover above $107,000; however, several warning signs arise amidst market volatility.
Network Activity Weak Despite Bitcoin Price Strength
While Bitcoin's price bounced back from $75,000 to $111,000, active addresses have not reacted to this increase. The network activity index shows a downward trend, indicating that actual network usage does not reflect the excitement seen in price charts.
Declining Retail Investor Participation
Data reveals that retail investor participation is waning despite strong market performance. Much of the current trading comes from institutional channels or short-term speculation in futures markets. The cautious stance among traders is bolstered by falling funding rates and decreased open interest.
Bearish BTC USD Setups Forming in the Background
Amid possible short squeeze setups and stabilizing macro conditions, signs of bearish sentiment are apparent. The absence of fundamental support and low network activity may lead to price volatility.
Given current signals, evolving sentiments, and plummeting activity, it remains uncertain how dominant Bitcoin's high price will remain. External factors could also sway market momentum.
