- On-chain activity drops to an 18-month low despite rising Bitcoin prices.
- RSI divergence hints at weakening momentum near critical $110K resistance.
Bitcoin rebounded to $108,000 this week following a brief dip below $100,000. The surge comes amid rising retail enthusiasm and renewed bullish sentiment. Data from CryptoQuant shows Bitcoin’s Network Activity Index has fallen to 3.47k, marking the lowest level in over 1.5 years.
This decline in activity suggests reduced on-chain transactions and user participation. CryptoQuant analysts described the network as a “ghost town,” highlighting the lack of retail trading volume and muted wallet movement.
Despite low engagement, holders are not selling. Instead, long-term holders (LTHs) continue to accumulate Bitcoin, according to the STH/LTH Supply Dynamics. This accumulation points to a holding pattern rather than panic selling. The spot market remains inactive, but futures activity tells a different story.
CryptoQuant noted a sharp rise in futures trading frequency, especially among retail participants. The Retail Activity Surge indicator now reads “Too Many Retail,” reflecting speculative positioning. Coincryptonews recently highlighted that Ethereum’s future open interest has reached an all-time high. These trends indicate rising speculative risk, even as the spot market stays quiet.
Retail FOMO Drives Sentiment Into Greed Zone
Santiment reported that Bitcoin’s recent price rebound sparked an intense wave of retail optimism. After panic selling during the dip, traders have returned with one of the most significant spikes in FOMO over the past two weeks. Sentiment data shows an increase in positive mentions across social media platforms, surpassing negative commentary.
According to Santiment’s sentiment metrics, the market has entered the “Greed Zone.” Historically, this zone aligns with market tops and signals a potential reversal. CoinMarketCap’s Fear and Greed Index currently reads 64, placing sentiment firmly in the “Greed” category. The index recently approached “Extreme Greed,” further raising caution among analysts.
Experts warn that sentiment-driven markets often act contrary to crowd behavior. Historically, surges in retail optimism precede price pullbacks. As Bitcoin approaches its previous all-time high of $112,000, traders are advised to monitor sentiment closely rather than follow it blindly.
Price Action Stalls Near $110K Resistance Level
As of June 10, 2025, Bitcoin is trading at $108,952, down 1.23% for the day, according to TradingView. The price briefly touched $110,352 before facing rejection, suggesting strong resistance near the $110K level. Analysts identify this zone as a potential ceiling unless broader momentum returns.
The Relative Strength Index (RSI) stands at 59.58, just below the overbought threshold of 70. It recently crossed above its moving average of 53.99, showing short-term bullish momentum. However, the RSI trend is diverging from price, indicating weakening strength.
Volume data shows 608 BTC traded during the day, suggesting moderate market interest. While price has continued to form higher lows since March, the inability to breach the $110K—$112K resistance may lead to short-term consolidation.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
