The cryptocurrency market is experiencing a slight downturn amid a weakening bullish trend and a weak wave of profit taking by long-term bitcoin holders.
The fear and greed index begins to decline fromthe highest level in the last 7 months, since the October increase in the BTC rate by more than 40%, reaching a new historical high, prompted long-term holders to partially take profits.
According to Glassnode, given the nature of the price cycle, the current wave of sales is moderate compared to previous crashesafter reaching record levels. The company's analysts say that accumulation peaked in mid-September, and the current trend is in line with the beginning of the bullish growth phase.
Network data points to ongoingdecrease in reserves on crypto-exchange wallets. According to Arcane Research, the current level is the lowest since January 2018, which could mean continued high demand (exceeding supply) for coins.
In the near future, investor interest mayfuel anticipation for a major system-wide upgrade to the Bitcoin Taproot protocol scheduled for November. After previous similar large-scale changes in the network of the first cryptocurrency in August 2017, its price jumped by 50%.
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