Bitcoin (BTC) Could Be Headed for Sideways Movement or More Correction, On-Chain Metrics Suggest

Bitcoin (BTC) may be setting up for sideways consolidation or further correction as buying pressure weakens, on-chain metrics suggest.

On social media platform X, crypto analytics firm Glassnode says BTC’s short-term demand momentum is waning.

“One key indicator: Hot Capital (capital revived over the last 7 days) has plunged 66.7% from its December 12th peak of $96.2 billion to $32.0 billion.”

The firm also points to BTC’s diminishing exchange volume momentum and low funding rates as hints of reduced demand.

“The 30-day average of exchange volume is nearing the 365-day average, reflecting reduced capital flows since the December market top.

The seven-day moving average of the mean funding rate, as well as the funding rates from the top three perpetual markets, remains below the neutral value of 0.01%. This indicates a continued absence of demand from aggressive buyers, despite the short rally toward $102,000.

Without a new catalyst, the waning short-term demand suggests either a sideways consolidation period or a heightened likelihood of further correction.”

Bitcoin is trading at $92,536 at time of writing. The top-ranked crypto asset by market cap is down nearly 3% in the past 24 hours and more than 4% in the past seven days. BTC is also still down more than 14% from its all-time high of $108,135, which it set in December.

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