The market has been hoping for quick changes after a rather monotonous Bitcoin price action, but BTC may make participants wait a little longer before releasing any positive information.
Investors have been disappointed by the Bitcoin price action, which has remained below $20,000 for most of October. BTC’s price has been governed by a tight supply band around the $19,000 mark because bears and bulls have failed to move prices in either direction.
At the time of writing, BTC was trading at $19,268, indicating a 23.72% increase in daily trade volumes to begin the week. Today, the global crypto market cap increased slightly to $964 billion, roughly in line with the price of Bitcoin.
Price consolidation for BTC
The technicals of Bitcoin do not yet exhibit rallying signals, despite the market’s hopes for recovery following a prolonged bearish period.
The BTC price is testing the lower levels of late 2020 that it recovered from following the pandemic-driven downturn on the long-term chart. The significantly higher trading volumes this time around are one significant distinction between these two periods.
The short-term SOPR (break-even) value was lower than 1, indicating that short-term sentiment remained bearish despite the BTC price’s low levels.
The SOPR vs. aSOPR comparison reveals that every participant who purchased after December 2020 is currently losing money. It will be hard for long haul holder SOPR values to recover a positive pattern at any point in the near future.
Additionally, as the BTC price fell below the on-chain resistance of $19,500, the SOPR values exhibit a bearish trend in the immediate future.
Demand in the market is low.
The perpetual futures market had a significant impact on BTC’s short-term price movement, despite the spot market’s relatively stable retail demand. Therefore, it is advantageous to evaluate the futures market’s sentiment during times of confusion.
Notably, as the price began to consolidate at the $19,000 support after falling from $22,000, the BTC funding rates are once more in negative territory.
Interestingly, funding rate values are still significantly lower than they were between 2019 and 2021, indicating that the futures market has very little demand and activity.
Overall, the BTC price may remain in this rangebound trajectory for a while longer before making any significant shifts due to low demand and high macroeconomic uncertainty.