In August 2023, Bitcoin address activity has reached a peak not seen in 3.5 months. The surge in activity suggests that the BTC price is gearing up for the next bull run, and this comes amidst a period of low volatility.
As August begins, the Bitcoin address activity has shown a remarkable increase. Despite the BTC price consolidating around $29,000, this surge in address activity suggests a potential bounce back in the short term.
In August, the utilization of Bitcoin addresses reached its highest point in 3.5 months. Alongside this rise in activity, there have been significant loss transactions and negative sentiment. These factors combined indicate a high probability of a short-term price bounce for BTC, as explained by 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
Bitcoin Price Consolidates Around $29,000 Amid Low Volatility
Bitcoin, the world’s largest cryptocurrency, has experienced some price fluctuations this week. However, it is once again consolidating around the $29,000 mark. Interestingly, the Bitcoin price volatility has reached its lowest levels since June 2020, indicating the potential formation of a base for the next parabolic bull run, following historical trends.
According to Mike McGlone, Bloomberg’s senior commodity strategist, the 180-day volatility, currently at approximately 46% at the start of August, is historically a bullish sign for prices. However, he raises concerns about the recent Bitcoin price weakness compared to equities since the end of the first quarter, which could imply pressure on all risk assets.
Despite the price swings and low volatility, long-term Bitcoin holders are holding strong with “diamond hands.” An impressive 55% of the total supply has remained untouched over the past two years, showcasing their conviction and confidence in the cryptocurrency.
#Bitcoin | 55% of the circulating $BTC supply hasn't moved in two years!
That's a testament to long-term #BTC holders standing firm in their belief. We're in it for the long haul! pic.twitter.com/f523xa54dh
— Ali (@ali_charts) August 2, 2023
Bitcoin whales, referring to millionaire and billionaire addresses, have been consistently accumulating the cryptocurrency since May 2023. Together, these whales own a massive 11.5 million BTC, accounting for more than half of the total supply (59.2%). In just the past 12 weeks, their combined share has increased by 27,755 BTC, as reported by Santiment.
Bitcoin Price Movement on the Technical Chart
The technical analysis for Bitcoin appears to be bullish currently. CrediBULL Crypto believes that the most significant price movements for cryptocurrencies are yet to happen. Despite a month of sideways movement in BTC and market dominance, the cryptocurrency has established a higher low. The H12 bullish divergence has been confirmed, and the Relative Strength Index (RSI) on higher timeframes looks reset. Staying above the critical “magic” 40 RSI level, there are expectations for the next upward move.
Courtesy: Santiment
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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