Bitcoin: Examining if BTC will struggle to stay above $100K
2025-07-05 21:12:35
Main Idea
Bitcoin's price remains above $100K, but declining exchange activity, weak fundamentals, and potential overvaluation raise concerns about its sustainability at this level.
Key Points
1. Bitcoin's exchange volume momentum has declined since early June, with the 30-day average dropping to $5.9 billion, just 7% above the yearly average.
2. Despite momentary inflow spikes, the broader trend shows sustained negative exchange outflows, indicating potential whale disinterest.
3. Bitcoin’s Network Value to Metcalfe (NVM) Ratio surged 14.14% to 2.76, signaling potential overvaluation based on network usage.
4. BTC’s price and Daily Active Addresses (DAA) show a growing divergence, suggesting weak on-chain support for the current price level.
5. Mounting on-chain weaknesses and declining user activity raise concerns about Bitcoin's ability to sustain prices above $100K without stronger fundamentals.
Description
Bitcoin remains above $100K, but slumping exchange activity and weak fundamentals pose growing downside risk.
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