- The volume of Bitcoin currency inflows hit a one-month low.
- Whale confidence in BTC was high while open interest fell.
After a price correction a few days ago, Bitcoins [BTC] The price chose to move sideways as the trend remained less volatile. While this can be attributed to market conditions, things can change quickly. This seemed likely, as a few stats looked optimistic about the king of cryptos.
Read Bitcoins [BTC] Price Prediction 2023-24
A look at Bitcoin investor activity
Over the past week, BTC’s price chart remained flat as the price moved only marginally. According to CurrencyMarketCapBTC traded at $26,030.19 with a market cap of over $506 billion. Not only that, investor interest in trading the coin was also low as weekly volume dropped by more than 40%.
Trading volume is an interesting metric to consider when it comes to price, as it directly reflects network activity. A retrospective suggested that when the metric spike happened, it was followed by an increase in Bitcoin’s price.
For several months, BTC‘s total transfer volume moved sideways. Such incidents also occurred earlier in 2015 and 2020. After those incidents, the standard skyrocketed. Therefore, there was a good chance that a similar episode would happen again, giving hope for a BTC bull rally in the coming days.
Source: Glassnode
Is the weather finally changing for Bitcoin?
The possibility to BTCIt seemed likely that the total transfer volume chart would peak as quite a few other metrics turned bullish on BTC. For example, the Glassnode Alerts tweet pointed out that BTC inflow volume reached a one-month low of $29,838,347.22 on August 28.
📉 #Bitcoin $BTC Market inflow volume (7d MA) just hit a one-month low of $29,838,347.22
View statistics:https://t.co/dzmYWUYjoL pic.twitter.com/KN0YOGoIex
— Glassnode Alerts (@glassnodealerts) August 26, 2023
This meant that not many investors are currently depositing their tokens on exchanges. It also suggested that selling pressure was low, increasing the likelihood of a price hike.
Not only that, but the whales’ confidence in BTC remained high. This was evidenced by the fact that the number of Bitcoin whales increased reaches a one-month high of 1,608.
Is your wallet green? Check the Bitcoin Profit Calculator
A look at BTC’s on-chain data revealed that the coin’s supply on exchanges fell, while off-exchange supply increased, meaning investors bought BTC.
Source: Sentiment
The coin’s MVRV ratio also improved over the past week, which was another bullish signal. According to Coinglass, while BTC‘s price moved sideways, outstanding interest fell. A drop in the benchmark generally leads to a trend reversal, indicating that a price increase is imminent.
Source: Coinglass
