{"id":139253,"date":"2020-07-14T09:30:22","date_gmt":"2020-07-14T08:30:22","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=139253"},"modified":"2020-07-14T06:35:32","modified_gmt":"2020-07-14T05:35:32","slug":"external-forces-are-stopping-bitcoin-from-rallying-despite-on-chain-strength","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/external-forces-are-stopping-bitcoin-from-rallying-despite-on-chain-strength\/","title":{"rendered":"External forces are stopping Bitcoin from rallying despite on-chain strength"},"content":{"rendered":"<p>Bitcoin has been flashing signs of intense fundamental strength throughout the past several weeks and months, with the turbulent price action seen throughout the first half of 2020 doing little to hamper this strength.<\/p>\n<p>The cryptocurrency\u2019s slow transition into the bull regime of one on-chain indicator reveals this, showing that the benchmark cryptocurrency\u2019s network health, liquidity, and investor sentiment have all been seeing positive growth.<\/p>\n<p>Although BTC\u2019s price action typically tracks its fundamental growth, it now appears that \u201cexternal forces\u201d could be halting any potential uptrend.<\/p>\n<p>One research firm notes that these forces may include uncertainty regarding Bitcoin\u2019s multi-month consolidation phase and unknowns regarding its status as a \u201crisk-on\u201d or \u201crisk-off\u201d asset.<\/p>\n<h2><strong>Bitcoin\u2019s fundamental strength mounts despite lackluster price action<\/strong><\/h2>\n<p>Throughout the past several months, <a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">Bitcoin<\/a> has been caught within a wide trading range between $9,000 and $10,000.<\/p>\n<p>Both buyers and sellers have remained deadlocked since the start of May, with each attempt to break out of this range proving to be fleeting.<\/p>\n<p>This consolidation has caused the cryptocurrency\u2019s volatility to reach levels not seen in over a year.<\/p>\n<p>According to data from the analytics platform <a href=\"https:\/\/cryptoslate.com\/companies\/glassnode\/\">Glassnode<\/a>, the crypto has been seeing tremendous fundamental growth in spite of its consolidation phase.<\/p>\n<p>The platform\u2019s \u201cGlassnode Compass\u201d indicator reveals that BTC has been steadily marching towards the bullish \u201cRegime 1\u201d section of the compass throughout the past several weeks.<\/p>\n<figure id=\"attachment_139254\" aria-describedby=\"caption-attachment-139254\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-139254\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/Glassnode-1-1024x852.png\" alt=\"Bitcoin\" width=\"1024\" height=\"852\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/Glassnode-1-1024x852.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/Glassnode-1-300x250.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/Glassnode-1-768x639.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/Glassnode-1-1536x1279.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/Glassnode-1-2048x1705.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-139254\" class=\"wp-caption-text\">Data Source: Glassnode<\/figcaption><\/figure>\n<p>They <a href=\"https:\/\/insights.glassnode.com\/the-week-on-chain-week-28-2020\/\">note<\/a> that this is now the seventh consecutive week in which the cryptocurrency has been sitting firmly within bull territory from an on-chain perspective.<\/p>\n<blockquote><p>\u201cDuring Week 28, the compass saw improvements both in terms of GNI and price performance, setting itself up for its 7th consecutive week in Regime 1.\u201d<\/p><\/blockquote>\n<p>They further add that high on-chain activity despite a stagnating price is what is helping boost Bitcoin\u2019s fundamental strength.<\/p>\n<blockquote><p>\u201cOn-chain activity has been consistently high for the past several months, and while BTC's price has stayed uncharacteristically stable, it is still performing positively relative to the beginning of the year.\u201d<\/p><\/blockquote>\n<h2><strong>External forces are stopping BTC from rallying<\/strong><strong>\u00a0<\/strong><\/h2>\n<p>It\u2019s clear that <a href=\"https:\/\/cryptoslate.com\/3-fundamental-reasons-bitcoin-market-bias-remains-bullish-after-recent-drop\/\">Bitcoin\u2019s price action<\/a> has not been reflecting the cryptocurrency\u2019s underlying strength.<\/p>\n<p>Glassnode believes that there are two primary factors behind this trend, including uncertainty regarding the consolidation phase, and a lack of knowledge regarding where Bitcoin stands as a macro asset (i.e. is it risk-on or risk-off.)<\/p>\n<p>Bitcoin\u2019s ongoing consolidation bout is in itself neutral, but the last time BTC saw volatility this low was just before its price crashed in November of 2018.<\/p>\n<p>Investors are also concerned that any imminent downside in the stock market could place some intense pressure on the cryptocurrency \u2013 especially if it has maintained its close correlation to the benchmark indices.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin has been flashing signs of intense fundamental strength throughout the past several weeks and months, with the turbulent price action seen throughout the first half of 2020 doing little to hamper this strength. The cryptocurrency\u2019s slow transition into the bull regime of one on-chain indicator reveals this, showing that the benchmark cryptocurrency\u2019s network health, [&hellip;]<\/p>\n","protected":false},"author":174,"featured_media":139274,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120,15323],"tags":[60786,63036],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>External forces are stopping Bitcoin from rallying despite on-chain strength<\/title>\n<meta name=\"description\" content=\"Bitcoin&#039;s price action typically tracks its fundamental growth, but it now appears that \u201cexternal forces\u201d are halting any potential uptrend.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/external-forces-are-stopping-bitcoin-from-rallying-despite-on-chain-strength\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"External forces are stopping Bitcoin from rallying despite on-chain strength\" \/>\n<meta property=\"og:description\" content=\"Bitcoin&#039;s price action typically tracks its fundamental growth, but it now appears that \u201cexternal forces\u201d are halting any potential uptrend.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/external-forces-are-stopping-bitcoin-from-rallying-despite-on-chain-strength\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2020-07-14T08:30:22+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-07-14T05:35:32+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/07\/bitcoin-forces.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Cole Petersen\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Cole Petersen\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/external-forces-are-stopping-bitcoin-from-rallying-despite-on-chain-strength\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/external-forces-are-stopping-bitcoin-from-rallying-despite-on-chain-strength\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/#person\",\"name\":\"Cole Petersen\",\"url\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/11\/author-cole-petersen.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/11\/author-cole-petersen.jpg\",\"caption\":\"Cole Petersen\"},\"jobTitle\":\"Journalist\",\"description\":\"Cole is a freelance journalist and university student studying philosophy. 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