Perfect storm brews for Bitcoin as on-chain transaction value drops to a 3-month low

On Wednesday, December 22, an intriguing indicator in terms of total Bitcoin (BTC) transactions surfaced following the digital assets’ recent substantial inflow.

Evidently, Bitcoin’s on-chain transaction value has fallen to a three-month low based on the hourly chart seven-day monthly average, according to the most recent data given by on-chain metrics platform Glassnode.

Bitcoin’s trading volume below $6 billion

Interestingly, the transaction volume equates to just over $5.94 billion on the dollar chart. It’s worth noting that the last time Bitcoin’s transaction value was this low was when BTC was trading over $61,000 and just a week before it reached its all-time high.

What is particularly noteworthy while the transaction volume hits a three-month low is the fact that the Bitcoin market is in a struggle between bulls and bears as the leading digital assets aims to break above the crucial $50,000 barrier.

Indeed, Bitcoin is now experiencing different supply trends as it appears long-term holders are holding and accumulating, and miners are accumulating, according to the latest market data. Furthermore, Bitcoin supply is transitioning from a liquid to an illiquid state at a pace of 100,000 BTC each month,

Elsewhere, prominent crypto trading analyst Michael van de Poppe highlighted that leading cryptocurrency needs to break above $50,500 to say that we are back in bullish territory he

Currently, the flagship digital asset is trading at $48,699, up 0.05% on the day and 2.24%over the last week, with a total market cap of $920.8 billion.