Despite the BTC price tanking to $29,000, Bitcoin investors remain confident and optimistic, as indicated by the expanding network activity.
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On Monday, July 24, Bitcoin (BTC), the world’s largest cryptocurrency, experienced selling pressure, causing its price to hover around $29,000. It broke under the support level of $29,872, with the next support zone expected at $27,500.
Despite the BTC price weakness, on-chain indicators suggest bullishness ahead. The drop below $30,000 hasn’t stopped more Bitcoins from moving off exchanges and into self-custody, leading to the BTC supply on exchanges reaching a 5-year low, as explained by on-chain data provider Santiment.
Bitcoin’s supply on exchanges is consistently moving into self custody, and the recent drop below $30,000 has not led to severe reactions indicating fear, uncertainty, and doubt (#FUD) or significant sell-offs. With only 1.17 million BTC remaining on exchanges, this is the lowest amount since November 2018.
Despite the recent drop to $29.2k at the beginning of the week, Bitcoin is still trading within the familiar price range of $28.0k to $31.8k, as highlighted by Santiment. This range is surprisingly narrow compared to the significant fluctuations the asset experienced between 2020 and 2022.
Currently, there is a prevailing sense of optimism in the market, with more bullish calls than bearish ones. However, this lack of concern among traders, even after Bitcoin’s failure to sustainably stay above the critical psychological support level of $30k, may not be the most positive signal for a potential turnaround.
Bitcoin on-chain activity surges
Popular crypto analyst Ali Charts cites data from Glassnode, revealing that the number of daily new addresses on the Bitcoin network is once again on the rise and showing an upward trend. This increase in network utilization is seen as a bullish signal.
Courtesy: Glassnode
When the monthly average of new Bitcoin wallets (green) exceeds the yearly average (grey), it signifies a boost in on-chain activity, indicating a healthier network with growing usage. After a brief decline, Bitcoin’s on-chain activity is now expanding once again!
Important: 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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