Bitcoin Negative Divergence Hints At Imminent Selling Pressure—Is ‘Uptober’ Under Threat?

Bitcoin is witnessing the development of a troubling divergence, which poses several questions about the sustainability of the cryptocurrency’s growth. Here’s the most important one so far — how does it affect price? Network Activity On Decline As Price Rises In a Quicktake post on the CryptoQuant platform, crypto pundit CryptoOnchain highlighted a growing negative divergence between Bitcoin’s price and the number of active addresses within the cryptocurrency’s ￰0￱ analyst’s report depended on the Bitcoin Active Addresses metric, which, as is apparent, tracks the number of unique wallet addresses participating in transactions on the network within a given ￰1￱ value of this metric reflects the amount of user activity or engagement of the crypto ￰2￱ the chart shared by CryptoOnchain, there is “a clear negative divergence between Bitcoin’s price and the 14-day moving average of active addresses.” What this means is that the broader Bitcoin bull rally is happening against a backdrop of reduced network activity and user ￰3￱ on-chain analyst further explained that such divergence typically functions as an early warning or signal that the bullish momentum might be losing its ￰4￱ the cryptocurrency thus loses its bullish momentum , the risk of the BTC price undergoing correctional activity may simultaneously ￰5￱ from the risk of correction, there is also the possibility of the Bitcoin network activity falling even ￰6￱ this happens, demand for BTC could further weaken, which could temporarily translate to increased selling ￰7￱ Buyers On Binance Losing Against The Sellers In another post on CryptoQuant, online pundit Arab Chain published data from Binance showing that the net Buy-Side Pressure vs Bitcoin Price remained negative for most of the ￰8￱ means that more sell transactions have been executed compared to the buys on Binance over the past 24 ￰9￱ crypto expert also explained that attempts by buyers to push Bitcoin’s price above $113,000 fell short, as Buy-Side Pressure on the world’s largest exchange by trading volume continued to lag within the negative ￰10￱ the positive side of the market outlook, Arab Chain noted that “a clear and sustained positive turn” in the Buy-Side Pressure, with a close above $113,000, is critical for the market’s picture to become a little more ￰11￱ of press time, Bitcoin is valued at about $109,610, reflecting no significant movement in the past 24 hours.