Bitcoin NVT Ratio Drop, On-Chain Activity Threaten $105K
Bitcoin’s NVT Ratio fell 11% to 33.8, reflecting weaker transaction volume relative to market cap. On-chain metrics from CryptoQuant and Santiment show daily transaction count dropped to 97,000 and network growth slid to 72,000 active addresses. These declines suggest reduced organic demand and liquidity, increasing risk of price pressure near the critical $105,000 support level. Bitcoin’s price fell over 3% in 24 hours to around $111,400. Weighted social sentiment turned negative at –1.06, while social dominance dipped to 25.56%, indicating a bearish market mood and potential for faster sell-offs. Traders should watch on-chain demand indicators and sentiment for signs of stabilization before increasing exposure.
Bearish
The significant drop in Bitcoin’s NVT Ratio alongside declining transaction counts and network growth points to weakening on-chain demand, often preceding price corrections. Historically, similar on-chain contractions in early 2021 and mid-2022 coincided with sharp pullbacks. The negative weighted sentiment and reduced social dominance further increase selling pressure, as traders may trigger stop-losses and rotate capital to altcoins. In the short term, the combination of reduced liquidity and bearish sentiment raises the risk of testing the $105,000 support. Over the longer term, Bitcoin could stabilize if on-chain activity rebounds, but traders should remain cautious and monitor key metrics. The current environment suggests a bearish near-term outlook until demand indicators improve.