Bitcoin Price Decline: Fundamentals Weakening but There Are Signals

Last Friday, the sharp drop in Bitcoin's (BTC) price caught the attention of investors. In the days that followed, a significant weakening was observed in the fundamental indicators on the Bitcoin blockchain. However, alongside these negative developments, there are also some hopeful signs.

CryptoQuant analyst Julio Moreno noted that the recent crash not only affected prices but also negatively impacted the fundamental indicators within the Bitcoin network. The analyst stated that the Bull Score Index had declined from 80 to 20, completely disrupting the market's strong bullish outlook and indicating that on-chain conditions had re-entered a bearish trend. This situation indicates that investors' interest in Bitcoin has weakened and the liquidity on the network has temporarily decreased.

According to CryptoQuant data, Bitcoin's Apparent Demand metric decreased by 111,000 Bitcoin over the past 30 days, marking the most significant drop since April. However, Moreno emphasized that despite the downtrend, the increase in stablecoin liquidity continues, and whale addresses have been accumulating Bitcoin. This situation suggests that despite short-term weakness, the possibility of a long-term recovery is still on the table.

For investors, this complex situation poses challenges in Bitcoin's on-chain outlook, but the continued appetite for buying among large investors creates a hopeful signal. The price fluctuations of Bitcoin highlight critical price levels that investors need to monitor closely and present opportunities for developing new strategies.