- BTC briefly traded hands above USD 30,000 on Aug 1.
- While the accumulation continued, key momentum indicators showed it to be weak.
A rise in Bitcoin [BTC] trading volume caused the leading coin to briefly trade above its $30,000 psychological price level during the intraday trading session on Aug. 1.
📈 #Bitcoin has broken above $30k again, with the help of the many traders who have capitulated from price declines over the past week. Volume is surging to start August, and this psychological cross of resistance could turn sentiment positively. https://t.co/CwMGA9yxgF pic.twitter.com/0pGaM6PJSd
— Santiment (@santimentfeed) August 2, 2023
Read Bitcoin [BTC] Price forecast 2023-2024
According to information from on-chain data provider Santiment, BTC trading volume rose to a six-week high on Aug. 1. The increase in trading volume was due to the return of traders who had capitulated in recent weeks as the value of BTC fell.
Should BTC holders expect more?
BTC whales benefited from the temporary price increase of the coin, data from Santiment showed. On-chain assessment of BTC’s whale trading activities over the past 24 hours revealed an increase in whale transactions of more than $100,000.
As per Santiment, BTC recorded 10,050 transactions worth more than $100,000 on August 1. This represented the highest daily count since July 26.
Source: Sentiment
A corresponding increase in whale trades counts when an asset’s price increases are seen as a bullish signal, as a sustained rally in whale trades can help increase that asset’s value.
Also, the ratio of BTC transaction volume to profit/loss climbed to its highest daily level since July 24. At the time of writing, this stood at 1,457, suggesting that BTC holders were making more profit on their trades than losses.
Source: Sentiment
In addition, the currency’s funding rates on the exchanges remained positive. Positive BTC funding rates indicate that longs are paying shorts to maintain their positions. This is usually seen as a bullish signal as it suggests that there is more buying pressure than selling pressure in the market.
Source: Sentiment
While the price of BTC has since dropped to $29,596 at the time of writing, data from CoinMarketCap revealed a price increase of 2% in the last 24 hours.
How Much Are 1,10,100 BTCs Today?
Proceed with caution
A look at BTC’s price movements on a 12-hour chart revealed that despite the brief rise in price, most daily traders remained cautious. As the pressure on accumulation momentum increased, the positions of key momentum indicators suggested it was not strong enough.
At press time, the coin’s Relative Strength Index (RSI) rested below the centerline at 48.27. Similarly, the Money Flow Index (MFI) was 40.07. With a flatness observed in these indicators at the time of writing, further price growth cannot be supported by the continued accumulation.
Source: BTC/USDT on trade view