Bitcoin: Bullish Signals Amidst Market Turbulence
Earlier this week, Bitcoin (BTC), the world's largest cryptocurrency, experienced some selling pressure, resulting in its price hovering around $29,000.
The BTC price broke below the support level of $29,872, and the next support zone is now at $27,500.
Despite this dip in price, certain on-chain indicators suggest a positive outlook for the future. Interestingly, more Bitcoins are moving off exchanges and into self-custody, with the BTC supply at exchanges reaching a 5-year low.
According to on-chain data provider Santiment, this shift towards self-custody has not triggered major concerns or upcoming sell-offs. The current amount of BTC on exchanges, 1.17 million, is the lowest since November 2018.
👍 #Bitcoin's supply on exchanges continues to move into self custody, and the drop below $30k last week hasn't triggered severe reactions that would indicate #FUD or more upcoming sell-offs. The 1.17M $BTC on exchanges is the least amount since Nov, 2018. https://t.co/UlqAO0W0cH pic.twitter.com/HmmUMm7QIx
— Santiment (@santimentfeed) July 26, 2023
Santiment also notes that despite the recent drop to $29.2k, Bitcoin is still trading within a familiar price range of $28.0k to $31.8k, which is narrower than the significant fluctuations between 2020 and 2022.
The market sentiment appears optimistic, with more bullish predictions than bearish ones. However, this lack of concern among traders, even after Bitcoin fell below the crucial psychological support level of $30,000, may not necessarily indicate a definite turnaround.
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Additionally, data from Glassnode, as explained by popular crypto analyst Ali Charts, indicates that the number of daily new addresses on the Bitcoin network is on the rise again. This increase in network utilization is seen as a bullish sign, suggesting a healthier network with growing usage.
#Bitcoin | Expanding onchain activity can be seen when the monthly average of new wallets (green) exceeds the yearly average (grey), which suggests improving network fundamentals and growing utilization.
After a short contraction, $BTC on-chain activity is once again expanding! pic.twitter.com/ThBm8RIozO
— Ali (@ali_charts) July 25, 2023
In summary, Bitcoin faced some selling pressure earlier this week, but certain on-chain indicators and network activity suggest a positive outlook for the cryptocurrency. However, it’s essential to remain cautious and consider various factors when predicting potential market trends.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
