Why could the Bitcoin price correction continue for months?

  • The Delta Gradient showed that the potential decline for Bitcoin could last for one to two months.
  • The drop in active addresses has raised concerns about the demand for BTC.

If bitcoin [BTC] If the price action matches the historical pattern, it is going to be lower than the last few days. In short, this predicted decline could last for a month or two.

However, AMBCrypto did not draw this conclusion without the necessary data. In this article, we will break it down. One of the top metrics that aligns with this prediction is the Delta Gradient.

South is the only way

For those who are not familiar with it, the delta gradient measures the relative change in momentum of a cryptocurrency relative to its actual biological capital.

When the gradient is positive, an uptrend is visible. Most of the times, this uptrend lasts from 28 to 60 days.

At press time, Bitcoin's downtrend was -2.34. This negative reading means that the price may continue to fall. Also, this projected downtrend may last for the same period.

Bitcoin will continue to improve

Source: Glassnode

At the time of this writing, BTC was valued at $61,062. This was a drop of 4.96% in the last seven days. If the delta gradient continues to decline, Bitcoin's price could fall below $60,000 like it did a few days ago.

This was also consistent with Bitcoin's response to periods when the realized price rose above the spot price. In addition, we examined the network realized profit/loss.

Mixed signals are visible on the charts

This metric shows the value of transactions that have made a profit or loss in the recent past. A positive reading of the metric indicates that profit-taking is high. Thus, it may lead to a drop in prices.

However, if the metric is negative, it means that there has been a surge in realized losses. If it is intense, the price may start climbing. According to Santiment, Bitcoin’s network realized profit/loss was -1.92 million.

This implies that a large portion of on-chain transactions ended in losses.

Usually, this drop is expected to lead to a rise in price. But this may not happen due to the decreasing activity on Bitcoin's network.

At press time, 24-hour active addresses dropped to 694,000. A few days ago, it was almost a million. Active addresses are a measure of user activity.

Bitcoin network activity drops

Source: Santiment

Thus, when it decreases as it has in recent times, it means that market participants are not interacting with BTC at high levels. As a result, this can lead to a significant drop in demand for the coin

Realistic or not, here is the market cap of BTC in terms of ETH

If the demand continues to decrease, the price will also decrease. However, analyst Michael van de Poppe believes that BTC's correction may be over soon.

According to him, the recently concluded week was good for the coin. He said,

“A very decent weekly candle Bitcoin It's getting to this point. I expect the correction to be relatively over. We haven't had the most obvious deep correction in previous cycles either.”

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