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Bitcoin (BTC) is giving hopeful signals for a potential price surge in the short term. Data provided by crypto analysis firm Santiment shows that Bitcoin’s wallet address activity reached its highest level in the past 3.5 months in August. This could indicate a recovery in price in the short term despite significant losses and negative investor sentiment.
Positive Signals Surrounding Bitcoin
Despite the pressure on Bitcoin’s price, it has been hovering around $29,000 with low volatility unseen since June 2020. This stagnation could potentially be a bottom formation for the next major bull run, based on previous market trends.
Mike McGlone, senior commodity strategist at Bloomberg, explained that the record low level of Bitcoin’s 180-day volatility in early August is often a bullish signal for prices. McGlone also expressed concerns about potential pressure on all risky assets due to Bitcoin’s weak performance compared to stocks since the end of the first quarter of the year.
Interestingly, long-term Bitcoin investors known as “diamond hands” have held 55% of the total supply over the past two years. Additionally, “Bitcoin whales” (millionaire and billionaire BTC investors) continue to accumulate Bitcoin, currently holding over 59.2% of the total BTC supply.
On the other hand, Santiment noted that “Bitcoin wallet addresses” activity reached its highest point in the past 3.5 months in August. This increase in usage, combined with significant losses and overall negative sentiment, could strongly indicate a price surge for Bitcoin in the short term.
Analyst Predicts Bitcoin’s Upside Potential
In addition to these factors, the technical outlook for Bitcoin also suggests an upward trend. Anonymous cryptocurrency analyst and trader CrediBULL Crypto emphasized that the major move for the largest cryptocurrency has not yet occurred.
The analyst interpreting Bitcoin on the monthly price chart highlighted a bottom formation in a monthly price chart and the Bitcoin Dominance (BTC.D) chart, which indicates its dominance in the market. CrediBULL Crypto commented on the price chart of Bitcoin, saying, “The uptrend has been confirmed on the 12-hour chart, the higher timeframe RSI has reset, and it is holding above the magical level of 40. Who’s ready for the next move in price?”
