There was a strong bearish sentiment that grew throughout September and Bitcoin’s price has had a difficult time sustaining itself above the $20,000 psychological support level.
All eyes are on the green price charts for the leading crypto over the past three months as Ether (ETH) and most altcoins are in the red or on a range bound trend.
Technical indicators have provided a signal about what to expect in October despite the extreme volatility in the cryptocurrency market, here are few of them.
The demand for blockchain decreased and the overall cost of using blockchain reflects both the demand for it and the willingness to pay. Just under $30 million was generated from bitcoin network fees last quarter, down from $42.9 million in the second quarter of 2022.
Ethereum fees, on the other hand, fell even further, from $1.29 billion in Q2 to $264 million in Q3, representing a 79% quarter-over-quarter decline (q-o-q).
Net inflows also showed that, unlike BTC, where the mood was neutral, ETH’s position was more positive. With over $192 million in net outflows from Q2, bitcoin saw small inflows of less than $50 million into regulated exchanges. For the fourth consecutive quarter, more than $1 billion worth of ether (ETH) left exchanges, while Q3 outflows were $57 million less than Q2.
BTC bulls may not visit soon
A major price increase looks far away without a good pump from whales and retailers. Whale metrics from Santiment showed that, as of press time, there was neither significant whale accumulation nor large utility in BTC.
BTC whales holding 100 to 10,000 BTC are still dumping. 3.5% of the supply at these critical addresses has been moved to addresses with less impact on future price changes during the previous year.
Another 0.4% of BTC’s supply was disposed of just in September. An important pattern to look out for in October is would-be whale accumulation.
Another troubling indicator that emerged from a check on BTC funding rates is that traders are slowly craving more and more when the price does not drop.
Once the longs are sufficiently elevated, another dump occurs, traders briefly try to short, but eventually give up and start to long once more.
