There is a before and after in one particular Bitcoin indicator that could be signaling bearish price action in the short term. As stated by many experts, the current bullish momentum can only be supported by strong demand, otherwise, BTC’s price could move sideways or risk returning to its former range below $40,000. If anything has me concerned it's this. Where is the demand? pic.twitter.com/id2a7l6tEf — Will Clemente (@WClementeIII) August 29, 2021 The amount of on-chain activity is a useful indicator to measure say demand. As the first cryptocurrency by market cap climbed to its all-time high, above $60,000, the network saw a rise in its number of transactions. This was probably triggered by a FOMO effect from retail investors jumping into the crypto space for fear of missing out on future gains. This phenomenon was driven by Elon Musk promoting Dogecoin, the boom in the non-fungible token (NFT) sector, and the yield offered by some DeFi protocols competing with Ethereum. Bitcoin benefited from this new wave of investors adopting cryptocurrencies, and digital assets. Thus, a combination of institutional and retail interest and capital allowed BTC’s price to reach a new ATH. Transactions fees at that moment skyrocketed. This happened right until the moment when BTC collapsed in the first of 3 capitulation events spread out across May, June, and July. On-chain activity dropped with the market and has been unable to...
