Bitcoin woes continue amid waning transactions, slumping fees
- Due to a steady decrease in daily transactions on the Bitcoin network, network fees dropped by over 15% in the last seven days.
- With strong resistance faced at $26,000, BTC accumulation has decreased.
The average transaction fee on the Bitcoin [BTC] network dropped by more than 15% in the past week to around $0.85 by 26 August. This represented its lowest level since 30 July, data from IntoTheBlock revealed.
Bitcoin fees have dropped by more than 15% this week as the number of transactions has slowed down. pic.twitter.com/8WSdgvYRiu
— IntoTheBlock (@intotheblock) August 26, 2023
How much are 1,10,100 BTCs worth today?
The drop in fees were due to a slowdown in the number of transactions on the network. According to data from Blockchain.com, the count of daily transactions on the Bitcoin network plummeted severely following the deleveraging event of 17 August. Within the 24 hours of the capital exodus, the daily transaction count on the network had dropped by over 15%.
As of 26 August, the number of daily confirmed transactions on the Bitcoin network totaled 497,513.
The coin’s price continues to stagnate at $26,000
At press time, the price per BTC was $26,026, according to data from CoinMarketCap. After exchanging hands briefly above $26,500 on 23 August, the leading coin’s price corrected and has since traded under $26,100.
The emergence of a new bear cycle on 16 August, a day before the deleveraging in the coin’s futures markets, has caused BTC to face further resistance at the $26,000 price level. As positive sentiment remains beaten down, accumulation momentum amongst daily traders has fallen.
With the bear cycle still underway at press time, BTC’s MACD line remained positioned beneath its trend line.
Highlighting the strength of BTC sellers in the current cycle, the coin’s Directional Movement Index (DMI) showed that BTC bears had control of the market on a daily chart. As of this writing, the positive directional index (green) at 13.16 rested below the negative directional index (green) at 29.27.
Moreover, the Average Directional Index (ADX) was 31.64. An ADX reading above 25 indicates that the trend is strong. This often signals that the price is moving in a clear direction and is likely to continue to move in that direction.
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In this case, the BTC sellers have overpowered those interested in buying the coin, and its price might continue to linger below $26,500 until sentiment improves.
As the market mulls over the coin’s next price direction, accumulation has dwindled significantly. Key momentum indicators showed that BTC was oversold, as many take to “dumping” their bags to prevent exposure to any further price drops. The coin’s Relative Strength Index (RSI) was 24.68, while its Money Flow Index (MFI) was 14.73.