Entering the month of August, the Bitcoin address activity has picked up very strongly. Although the BTC price has been consolidating at $29,000, this hints at some bounce back in the short term.
In August, Bitcoin’s address activity reached its highest level in 3.5 months. This rise in utility, along with significant loss transactions and negative sentiment, indicates a strong likelihood of a short-term (at least) price bounce for BTC, explains Santiment.
📈 #Bitcoin‘s address activity has surged to its highest level in 3.5 months in August. This utility increase, combined with major loss transactions & negative sentiment, is a strong sign that a short-term (at minimum) $BTC price bounce is more probable. https://t.co/5PzjYROX5T pic.twitter.com/G2tevAWdSM
— Santiment (@santimentfeed) August 3, 2023
The world’s largest cryptocurrency Bitcoin (BTC) has shown some price swings this week. However, it’s once again consolidating around $29,000 levels. The Bitcoin price volatility has hit the lowest levels since June 2020, which suggests the formation of a base for the next parabolic bull run as per historical trends.
Bloomberg’s senior commodity strategist Mike McGlone explains: “180-day volatility is the lowest ever at about 46% at the start of August, which is typically bullish for prices. My main concern is that divergent Bitcoin price weakness vs. equities since the end of 1Q may imply pressure on all risk assets”.
On the other hand, long-term Bitcoin holders continue to hold with diamond hands with a staggering 55% of the supply remaining unmoved over the past two years.
— Ali (@ali_charts) August 2, 2023
On the other hand, Bitcoin’s millionaire and billionaire addresses – aka Bitcoin whales – have continued to accumulate since May 2023. “Collectively, these whales own 11.5M $BTC, making up over half of the total existing supply (59.2%). Over the past 12 weeks, their collective share has risen by 27,755 $BTC,” notes Santiment.
BTC Price Action On the Technical Chart
Also, the technical setup for Bitcoin seems to be quite bullish at this stage. CrediBULL Crypto said that the biggest moves for crypto are yet to come. “A month of sideways action on BTC and dominance has simply made a higher low. H12 bullish div confirmed, RSI on higher TF looks reset, maintaining above the “magic” 40 RSI level, who’s ready for the next leg up?” he wrote.
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