In a recent tweet, Santiment, a leading cryptocurrency analytics platform, revealed that Bitcoin’s address activity had experienced a significant surge, reaching its highest level in 3.5 months during the month of August. This notable increase in utility is coupled with a rise in major loss transactions and a prevailing negative sentiment. According to experts, these factors combined provide a strong indication that a short-term price bounce for Bitcoin (BTC) is now more probable than before.
On-Chain Researcher Suggests Potential Breakout for Bitcoin
David Puell, an esteemed on-chain researcher associated with ARKInvest, reported on the latest developments in the world of Bitcoin. The Bitcoin Monthly report for July has been released, shedding light on crucial support and resistance levels. As per the report, BTC retains support at the short-term-holder cost basis and the 200-week moving average (MA) while potentially facing resistance at the liveliness-adjusted realized price.
BTC’s 90-day volatility is now reaching values not observed since 2017, hinting at the possibility of an expansion in the coming weeks to months. Moreover, a compressed hash rate, represented by the inverted hash ribbon, has shown signs of miner capitulation during July. In the view of experts, it could suggest a bullish market reversal.
In July, the priceĀ of bitcoin declined by 4.1%, reaching $29,230. InteĀrestingly, it found technical support at a leveĀl 9.7% higher than its 200-week moving aveĀrage of $26,623. This ability to secure teĀchnical support despite regulatory unceĀrtainties reflects theĀ enduring resilienceĀ of Bitcoin.
The liveliness metric, which measures the ratio of coins moved to coins dormant, indicates levels of holding behavior not witnessed since the last quarter of 2020. ARK’s own short-term-holder profit/loss ratio closed the month near 1, signifying that speculators are nearing breakeven levels. This trend is often associated with bullish reversals after short-term corrections in bull market environments.
Nevertheless, in short, BTC’s address activity surge and the associated factors indicate a potential short-term price bounce for the cryptocurrency. Meanwhile, Bitcoin’s on-chain indicators are showing potential for a breakout, but regulatory pressure continues to affect other cryptocurrencies like BNB.
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