Over the last week, several attempts have been made by the king coin to establish itself above $50,000. However, all efforts seemed to have gone in vain. Its price action has been restricted around $49,000, with the $47,900-level acting as a lower short-term support.
In many ways, Bitcoin’s[1] trajectory presents a classic case of chaos and confusion in the market.
At the time of writing, BTC was trading at $49,112, having seen daily gains of 1.41%. However, before BTC’s mid-short-term price trajectory can be analyzed, it is crucial to look at what happened last week.
Perplexing metrics
Over the last week, when many expected the king coin to head for recovery, there was a noticeable rise in network activity.
Bitcoin saw a close to 3% decrease in transactions and new addresses week-over-week. However, there was a near 4% jump in active addresses and an almost 5% hike in active supply.
Source: Glassnode
The aforementioned trends were suggestive of heightened network demand from existing market participants, rather than new players.
Furthermore, as BTC’s market cap fell by almost 1% to drop below $1 trillion, there was a minor -0.1% pullback in BTC’s hash rate. The network saw a whopping 16% jump in hash power to near-record levels of 181.77 EH/s. Bitcoin’s next difficulty adjustment is scheduled for 12 December and is expected to be a positive change of roughly +7.8%.
That being said, BTC wallets holding more than 1,000 Bitcoin were down by 1.36% over the week, potentially indicating profit-taking among larger players.
With the price action looking stagnant, this seemed to suggest confusion among market participants.
Price bottom reached?
Bitcoin’s trader sentiment had dropped into bearish territory over the last couple of days as people became increasingly skeptical of a return to mid-November price
