Bitcoin and altcoins face short-term bearish pressure

Based on data from CryptoQuant, we analyzed the usage of stablecoins. The following graph of the active addresses indicator was used. The graph tracks the total number of unique active addresses as senders and receivers. Accordingly, the 7-day moving average has been trending down since April 16.

The market, which was trending up in February, achieved a strong rise and peaked in early March. However, just a few days after this peak, Bitcoin managed to break through the $70,000 resistance level.

The recent downward trend indicates a decrease in interaction and trading activity. This shows that investors are reluctant to enter the bullish phase.

The 2024 foreign exchange reserves have been consolidating in a range, with a rapid decline from April 23 to May 10, which is reflected in a clear decrease in purchasing power. This means that stablecoin holders spend less stablecoins to buy cryptocurrencies.

However, a sharp increase was seen on May 13. Ideally for bulls, stablecoin foreign exchange reserves will continue to rise in the coming days.

The upward trend of this indicator shows that investors are more willing to stay on the sidelines. On the other hand, a downward trend is usually accompanied by an increase in the entire market. While USDT.D is above the 4.9% support level, dominance is expected to rise towards the 5.79% resistance level.

If a reversal and further decline is expected, bulls may see it as a sign of a longer continuation.

#BTC走势分析