Bitcoin Network Activity Crashes to Bear Market Lows – Time to Panic or Buy the Dip?

On-chain data shows Bitcoin’s network activity has slumped to levels last seen during crypto winter. Daily transactions and active addresses are down 40% from their 2024 peak.

Is this the canary in the coal mine? Or just another shakeout before the next leg up? Traders are split as BTC hovers around $60K – with institutional players quietly accumulating while retail investors flee.

Meanwhile, Wall Street analysts suddenly remember that ’volatility’ exists when crypto does anything except go up. Funny how that works.

Volatility remains low at 25.80%, signaling calm, but…

Bitcoin’s volatility has decreased to 25.80%, its lowest level in the past thirty days. This period of low volatility could suggest that the market is experiencing a temporary calm before any significant price movements. 

Historically, such periods of low volatility are often followed by sudden price shifts, whether upward or downward.

Given the recent price increase, the market may be preparing for another volatile phase, especially with the upcoming FOMC meeting potentially influencing broader market sentiment.

Source: IntoTheBlock

BTC faces resistance at $98K, indicating key price action

At the time of writing, BTC was testing key resistance at $98K, with Fibonacci retracement levels indicating critical price action.

The 0.236 and 0.382 retracement levels at $95,656 and $96,347 are key areas of interest, while the 50% and 61.8% levels at $94,799 and $92,171 provide potential support zones.

The Stochastic RSI was at 41.55, signaling neutral conditions, with room for both upward and downward movement.

A successful breakout above $98K would likely target the $100K mark, but failure to breach this level could lead to a pullback, making $90K and $92K the key support zones.

Source: TradingView

BTC ETF inflows signal institutional confidence despite uncertainty

Bitcoin ETF inflows have been robust, with a total of $5.13 billion entering BTC ETF products over the last three weeks. These inflows signal strong institutional confidence in Bitcoin, even as retail activity slows.

However, the upcoming FOMC meeting could introduce market volatility, as any adjustments in interest rates or commentary from the Federal Reserve could impact investor sentiment.

Despite this uncertainty, the inflows into BTC ETFs suggest that institutional investors remain optimistic about Bitcoin’s long-term potential.

Source: Santiment

Whale activity has surged recently, with institutional investors like BlackRock purchasing 280 BTC worth $37.8 million and Metaplanet adding 555 BTC. 

These purchases indicate that large holders are betting on Bitcoin’s future growth, and their actions could signal confidence in the asset, even amid uncertain market conditions. 

Is Bitcoin set for growth despite bear market signals?

Despite bear market signals, BTC’s price action, along with institutional inflows and whale activity, suggests potential growth.

With low volatility, major resistance at $98K, and institutional confidence rising, BTC may be gearing up for another upward move.

However, the market’s direction will depend on BTC’s response to key price levels and the upcoming FOMC meeting, which could impact investor sentiment.