Analysis of Bitcoin (BTC) On-chain Indicators – Demand for BTC is currently quite weak

Up to now, although the On-chain indicators are still very good, the price of it continues to trend down due to negative impacts from events like the Chinese government “lockdown” lockdown” Bitcoin market or Flashcrash event,…. Let’s join today Azcoinvest learn and analyze On-Chain BTC today and events that have happened on the network recently!

On-chain Bitcoin Indicator Analysis


Amount of BTC on the exchange

So luong BTC tren san Giao dich tiep tuc pha ATL 1
Amount of BTC on the exchange The transaction continues to break ATL

Overall, we can see that the amount of BTC on exchanges is continuing to break the ATL. The total amount of BTC on exchanges currently stands at 2.3729 million BTC, down about 0.4% from 2 weeks ago.

From September 14, 2021 to September 22, 2021, the exchange experienced a growth in the number of BTC. There have been about 12,000 – 13,000 BTC deposited on exchanges (equivalent to about $0.5B – $0.6B at $45,000/BTC).

So kuowjng BTC tang truong after after xuat hien tin tuc TQ cam BTC tung ra 1
The number of BTC increased after the news that China banned BTC from launching

Because the news of China banning Bitcoin appeared with greater frequency, BTC dropped nearly 16% from the $48,200 mark. At the same time, major exchanges such as Huobi, Binance began to take actions not to accept and cancel accounts of Chinese citizens.

When looking at the above data, we can also see that demand force Currently for BTC is quite low. But on the positive side we can still see that BTC is continuing to break ATL, which shows that events are happening released in China did not have a significant impact on the crypto market.

BTC Exchange Netflow

There was a fairly large amount of BTC deposited on the exchange on September 20, 2021, as soon as there were news about China banning bitcoin.

Amount of BTC deposited on the exchange

After being deposited over 5,214 BTC on September 20, (over $200M), its price has since dropped to almost 10 %.

This chart makes it clear that the demand for BTC is looking pretty weak right now. Although the supply is decreasing day by day, BTC still needs a few factors to boost demand to make the price grow.

Lighting Network Adoption

Lightning Network is Bitcoin’s layer 2 scaling solution, launched in 2015. It is the national network of El Salvador. and Twitter mainly use to reduce the overload and can apply the payment policy in BTC.

Recently, this network has experienced a very rapid growth.

So luong node tren Kightning network 1
Number of nodes on Kightning network

The number of nodes reaching ATH is at 15,600 nodes, 2 times the number achieved since the beginning of 2021. 

Not only the number of nodes, but the amount of BTC here also skyrocketed.

So luong BTC tren Lightning Network 1
Amount of BTC on Lightning Network

The number of BTC has reached more than 2,904 BTC, the growth has reached 170% since the beginning of the year.

The increasing use of the Lightning Network shows that the popularity of BTC and its application in life is increasing strongly.


Exchange Whale Ratio

This index is flat and shows no sign of spike.

Whale Ratio di ngang 1
Whale Ratio goes sideways

This shows that whales are not sellers in the current context but individual investors. The proof is that in the period from September 14 to September 22, this index tends to drop to the bottom.

Number of Stablecoins in the Market

The number of Stablecoins on the market has been on an uptrend recently. An additional $2.5B has been added to the market, but this is still relatively slow for the first half of September this year.

So luong stable coin tren thi truong 1
Number of stablecoins on the market

This is also a proof that the current market’s demand is quite weak.

BTC Long Term Holders Supply in Profit/Loss

Bitcoin duoc nam giu boi LTH tang manh va chiem phan lon 1
Bitcoin is held held by LTH surged and accounted for the majority

The number of Long Term Holders (LTH) has peaked and has a positive sign of constant growth from when BTC peaked until now. present. Also, if the historical data over time, we can also see that the decrease in LTH volume means that the market is in hot growth and has peaked, indicating a new bull run.

Besides, we see that the amount of BTC that LTH is currently holding is being recorded an increase in losses, it is likely that they will not continue. sell and hold to wait for higher growth.


We will track the wallet to see if it has this address: 1P5ZEDWTKTFGxQjZphgWPQUpe554WKDfHQ.
During the period from September 15 to the time of writing, this whale wallet accumulated an additional 1,255 BTC. This is a proof that long term investors and whales tend to accumulate more BTC which reduces the supply in the market.

Bien dong so du cua Top Holders 1
Top Holders balance fluctuations


Money flow from traditional investment funds continues to pour into the Crypto market. Up to now, it has been 6 consecutive weeks of these funds pouring in.

Quy truyen thong dau tu vao Crypto 1
Traditional fund investing in Crypto

The amount of money that traditional funds pumped into the market this month is estimated at $257.3M. The last week of September alone is $94.5M. Although it is notthe peak but this is also a positive sign that the interest is gradually pouring into the Crypto market.


This article is for informational purposes only, not an investment advice.

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