Bitcoin prices have struggled to maintain serious momentum over the past few weeks despite the new all-time highs in that period. Last week, the flagship cryptocurrency fell below $112,000, and then experienced some kind of revival behind the speech of Federal Reserve Chairman Jerome Powell.
However, BTC prices seem to have returned to a dull action pattern over the weekend, falling to around $115,000 on Saturday, August 23rd.
BTC market activity is declining – what is next after price?
In a new post on social media platform X, Alphractal revealed that the Bitcoin market appears to be forming for the next big move in the coming weeks. This projection is based on active supply metrics over 30 days and measures the number of unique coins that have moved at least once in the past month.
The 30-day active supply metric serves as a thermometer for BTC’s market interest, indicating both overheating and cool market conditions. As metrics rise, fresh capital inflows are circulating, suggesting strong investor activity.
Historically, an increase in Bitcoin’s 30-day active supply often coincides with the top and bottom of prices, especially as investors tend to move coins in times of extreme greed and fear. Thus, metric rises could be related to potential market reversals.
Meanwhile, a decline in Bitcoin’s 30-day active supply metrics usually calms the market situation with hesitation among investors after high stress and enthusiasm. If there are few coins moving and the supply is relatively stable, the market will have a tightness effect.
According to Alphractal data, active supply metrics show that the Bitcoin market has witnessed cooldown activity in recent weeks. The on-chain analytics firm added that slowing market activity could mean that BTC prices are ready for the next big move.
With the macroeconomic environment improving, Bitcoin prices seem to be consolidated within the narrowest range ever. Therefore, a sudden surge in activity can allow market leaders to enter a new phase of expansion, potentially reaching new highs.
Bitcoin price at a glance
At the time of this writing, BTC prices are just above $115,000, reflecting a nearly 2% decline over the past 24 hours. According to Coingecko data, the highest cryptocurrency in the past seven days has fallen by more than 2%.
