Bitcoin Faces Potential Two-Month Decline Amid Falling Active Addresses and Delta Gradient Warnings

• The Delta Gradient revealed that Bitcoin might face a downward trend for the next one to two months.
• There are growing concerns regarding the demand for BTC due to a drop in active addresses.
• “A pretty decent weekly candle for Bitcoin is approaching,” according to analyst Michael van de Poppe.

Discover the latest analysis on Bitcoin’s potential bearish trend, driven by key metrics like the Delta Gradient and Network Realized Profit/Loss, and understand the implications for the market.

Potential Downtrend for Bitcoin

Recent analyses indicate that Bitcoin’s price could continue to decline over the upcoming months, following historical patterns. One of the primary indicators supporting this prediction is the Delta Gradient.

Understanding the Delta Gradient

The Delta Gradient measures changes in momentum relative to the true organic capital of a cryptocurrency. A negative Delta Gradient, currently at -2.34, suggests a sustained bearish trend, potentially lasting 28 to 60 days.

Current Market Performance

At the moment, Bitcoin is trading at $61,062, marking a 4.96% decrease over the past week. This decline aligns with the descending Delta Gradient and could see Bitcoin’s price falling below $60,000 once more.

Network Realized Profit/Loss

The Network Realized Profit/Loss metric reveals the profit or loss of recent transactions. A significant negative reading indicates widespread losses, which typically suggest a forthcoming price increase. However, the current negative Network Realized Profit/Loss reading, combined with low user activity, could point towards continued price declines.

Active Addresses on the Decline

The number of active Bitcoin addresses has dropped to 694,000 from nearly one million, indicating reduced market activity. Lower active addresses correlate with decreased demand, which could further drive down Bitcoin’s price.

Expert Opinions and Market Outlook

Despite the bearish indicators, some analysts, like Michael van de Poppe, believe that the recent downturn might be nearing its end. He highlighted a promising weekly candle for Bitcoin, suggesting that the correction phase might soon conclude.

Conclusion

While key metrics like the Delta Gradient and Network Realized Profit/Loss indicate a potential downturn for Bitcoin, other factors suggest that the bearish trend might be temporary. Investors should closely monitor these metrics and market signals to make informed decisions.