There was strong bearish sentiment that increased throughout September and Bitcoin’s price struggled to hold above the $20,000 psychological support level.
All eyes are looking for greener price charts for the leading cryptos over the past three months as Ether (ETH) and the majority of altcoins are in the red or in a range bound trend.
Technical indicators have given a signal on what to expect in October despite the extreme volatility in the cryptocurrency market, here are some of them.
Blockchain demand has declined and the total cost of using a blockchain reflects both demand and willingness to pay. Just under $30 million was generated from Bitcoin network fees last quarter, compared to $42.9 million in Q2 2022.
Ethereum fees, on the other hand, fell even further, from $1.29 billion in Q2 to $264 million in Q3, down 79% qoq.
The net flows also showed ETH taking a more positive stance in contrast to BTC where sentiment was neutral. Beyond Q2’s $192 million in net outflows, Bitcoin saw small inflows of under $50 million into controlled exchanges. For the fourth straight quarter, over $1 billion worth of Ether (ETH) exited exchanges, while Q3 outflows were $57 million lower than Q2.
BTC bulls may not be visiting anytime soon
Without a good pump from whales and retailers, a big price hike seems a long way off. Whale metrics from Santiment showed that there was no significant accumulation of whales nor major utility in BTC at press time.
BTC whales with between 100 and 10,000 BTC in their possession are still dumping. 3.5% of supply at these key addresses has shifted over the past year to addresses that have less impact on future price changes.
Another 0.4% of BTC’s supply was only sold in September. An important pattern to watch for in October is the aggregation of wannabe whales.
Another troubling indicator that emerged from a review of BTC funding prices is that traders are gradually craving it more and more unless the price falls.
Once the longs are sufficiently elevated, another dump occurs, traders briefly attempt to go short but eventually give up and start long again.
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