The recent 12% leap in Bitcoin (BTC) has failed to generate much hype among investors. According to analytics firm Glassnode, the primary cryptocurrency is struggling to find favor with traders despite surging above $40,000 on July 26. Noting that buyer activity remains weak, the firm highlighted that demand must keep up with price performance to sustain the ongoing momentum. Glassnode Data Indicates Bitcoin Buyer Activity Still Bearish Data provided by Glassnode indicates that Bitcoin’s current rise lacks strong investor backing. The Stablecoin Supply Ratio (SSR), a ratio of Bitcoin supply and the supply of stablecoins denoted in BTC, is steadily increasing at the moment. Whenever this ratio is high, the buying power for Bitcoin weakens considerably. Any significant changes to the SSR could only be made by institutional investors rather than individuals. As of now, it seems that they are yet to make a move that oscillates the SSR to the other side. With Bitcoin already retracing some of its gains, this might be even more difficult. So far, the asset has declined by nearly 4%, while struggling to push beyond its 200-day exponential moving average (EMA). If it breaches this trendline, the road to bullish recovery would become clearer. Crypto Experts Warn Against Overly Optimistic Assessments Although Bitcoin reached $40,370 on July 26, it has since pulled back significantly in the wake of new developments. At the time of writing, the currency was trading at $36,419. Nevertheless, the recent surge has caused a lot of excitement in crypto circles and fanned speculations around an incoming bull market. Experts believe that the Bitcoin market has indeed moved to higher highs. This means the prices could trend in the $34,500–$36,000 range in the upcoming weeks. However, these experts have also warned investors against overly optimistic assessments of the recent performance. Additionally, crypto data aggregator Material Indicator suggested that buyer power remains low above the $36,000 mark. Even if bulls overtake the $40,000 level, they will struggle against the 200-day moving average. Glassnode also pointed out that on-chain activity is still “somewhat bearish” for Bitcoin. In its weekly newsletter, the firm stated: “Perhaps utilization of the Bitcoin network is lagging prices in this case. Ideally, renewed volatility and constructive price action spark back demand for block-space. If not, it may suggest a more cautious framework is necessary for the weeks ahead.”
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