Bitcoin’s ongoing bout of sideways trading has offered little insight into its mid-term outlook.
New data now shows that Bitcoin’s price action throughout 2020 has been driven by a significantly limited number of market participants, which may explain why the crypto has been ranging between $9,000 and $10,000 for over six weeks.
According to one analytics firm, only 27% of BTC’s circulating supply has moved in 2020. This means that the remaining 73% has remained dormant, with active traders utilizing margin, futures, and options likely being the source of all of its volatility.
This comes as data shows that the benchmark cryptocurrency’s fundamental health is starting to grow, potentially opening the gates for it to see further upside in the weeks and months ahead.
Bitcoin’s Underlying Health Grows as On and Off-Chain Data Flashes Bullish Signs
Bitcoin’s multi-week bout of consolidation has struck a blow to investor sentiment, leading many to forecast that the cryptocurrency will soon breakdown and