BTC On-Chain Metrics Hit 1-Month Lows Amid Price Drop

Bitcoin's On-Chain Metrics Decline

Bitcoin recently experienced a decline in key on-chain metrics, signaling a potential shift in market dynamics. The Mean Block Size for Bitcoin hit a 1-month low, dropping to 1,729,269.574. This follows a previous low recorded in mid-April. Additionally, the Number of BTC Spent Outputs with a lifespan of less than one hour also reached a low, indicating reduced transaction activity.

Current Market Performance

Bitcoin's price has faced downward pressure, dropping 3.16% over the past 24 hours. This decrease has extended its weekly performance to -9.10%, with its price hovering around $28,004.17. Furthermore, Bitcoin's market dominance fell slightly to 45.78%, reflecting a shift in market sentiment.

Technical Analysis and Key Support Levels

BTC's price has slipped below the 9-day and 20-day EMA lines recently, resting on a critical support level at $28,000. Should the price breach this level, it may decline further to the next support at approximately $27,100 in the coming days. Technical indicators such as the 9-day EMA nearing a bearish crossover with the 20-day EMA and the RSI crossing below its SMA suggest potential continued bearish momentum.

Conclusion

The recent data highlights a challenging period for Bitcoin, with significant on-chain metrics reaching lows and price trends showing bearish signals. Investors are advised to monitor these developments closely, as further declines could impact broader market trends.