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 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.
To be short, 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.
The recent price of Bitcoin is $29,180 at the time of writing, showcasing its resilience amidst market fluctuations. This current price point holds significant importance for traders and investors, as they closely watch for potential market movements in the days to come.
Bitcoin’s technical setup appears highly bullish at this stage, with signs pointing towards potential significant moves. According to CrediBULL Crypto, a month of sideways action on BTC and dominance has resulted in a higher low formation, indicating positive momentum.
Additionally, the confirmed H12 bullish divergence and the reset RSI on higher time frames add to the positive sentiment. Experts also emphasise the importance of maintaining levels above the “magic” 45 RSI level, which may signal the next leg up in Bitcoin’s price trajectory. With these encouraging indicators, the crypto community eagerly awaits the exciting possibilities.
Bloomberg’s senior commodity strategist, Mike McGlone, highlights an intriguing development in Bitcoin’s volatility. As of the start of August, the 180-day volatility has hit an all-time low, hovering around 46%. Historically, such low volatility levels have been a bullish indicator of Bitcoin’s price. However, McGlone expresses concern over the divergence between Bitcoin’s weakness and equities’ strength since the end of the first quarter, suggesting possible pressure on all risk assets.
Meanwhile, the resilience of long-term Bitcoin holders remains evident, as 55% of the supply has remained unmoved over the past two years, demonstrating their commitment to holding with unwavering conviction.
On the other hand, the activity of Bitcoin whales, known as millionaire and billionaire addresses, has been notable since May 2023. These whales own a substantial 11.5 million $BTC, representing over half of the total supply (59.2%). Remarkably, over the past 12 weeks, their combined holdings have increased by 27,755 $BTC, indicating continued accumulation.
With low volatility, long-term holder strength, and whale accumulation, the Bitcoin market is witnessing a blend of dynamics that fuel speculation about the cryptocurrency’s future trajectory. Market participants keenly observe these factors, seeking insights into the potential direction of BTC’s price in the coming months.