Why the Bitcoin price correction may last for several months

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

If Bitcoin [BTC] The price action is consistent with historical patterns, so it is about to decline from the past few days. In short, this expected decline may continue for a month or two.

However, AMBCrypto did not reach this conclusion without the necessary data, and in this article, we will break it down. One of the most important metrics that matches this expectation is the delta gradient.

South is the way

For those unfamiliar, Delta Gradient measures the relative change in momentum versus the real organic capital of a cryptocurrency.

When the gradient is positive, an upward trend appears. Most often, this upward trend lasts for 28 to 60 days.

At the time of writing, Bitcoin's downtrend was -2.34. negative reading This means that the price may continue to undergo a downtrend. This expected downtrend may continue for a similar period.

Source: Glassnode

At the time of this writing, Bitcoin is trading at $61,062. This was a decline of 4.96% over the past seven days. If the delta indicator continues to decline, Bitcoin price may fall below $60,000 as it happened a few days ago.

This was also consistent with Bitcoin’s reaction to a period when the realized price rose above the spot value. Furthermore, we examined the realized profit/loss at the network level.

Mixed signals appear on the charts.

This metric shows the value of recent profitable or losing trades. A positive reading of the metric indicates increased profit taking. This could lead to lower prices.

However, if the metric is negative, it means that there is an increase in realized losses. If it is condensed, the price may start to rise. According to Santiment, the realized profit/loss of the Bitcoin network is -1.92 million.

This means that a portion of the transactions take place on the chain Ended with losses.

This decline would normally be expected to herald rising prices, but this may not be the case due to dwindling activity on the Bitcoin network.

At the time of publishing this report, the number of active addresses over the past 24 hours has dropped to 694,000. A few days ago, the number was approaching 1 million. Active addresses are a measure of user activity.

Source: Santiment

Therefore, when it drops as it has recently, it means that market participants are not interacting with Bitcoin at a high level. Consequently, this could lead to a significant decrease in demand for the currency.

Whether it's realistic or not, here's the market cap of BTC in terms of ETH

If demand continues to fall, the price will fall as well. However, analyst Michael van de Poppe says: opinion The BTC correction will likely end soon.

According to him, the week that ended recently was good for the currency. He said:

“Very good weekly candle for Bitcoin It's getting closer here. I expect the correction to be relatively over. We haven't had the more pronounced deep corrections in previous cycles either.