Bitcoin rebounded from its weekly low when it hit a two-week high, despite daily trading volume plummeting to its lowest levels since October 2020.
Bitcoin managed to regain significant ground after its bearish sentiment earlier in the week. price hit a new two-week high of $ 34,800 Binance. Despite the steady rise in price, on-chain analysis indicates that bitcoin’s daily trading volume is at its lowest level since October 2020, according to Santiment.
While daily trading volumes are hitting a nine-month low, Santiment indicates that this is not entirely bearish for the price of bitcoin. But it will mean that “individual exchanges will have a greater impact on the markets.”
Bitcoin crowd sentiment turns positive
on-chain analytics firm also indicated that users now have changed their bias towards bitcoin to positive. Which implies that most expect a more bullish momentum in the cryptocurrency. While bitcoin saw an impressive price spike over the weekend that saw it rise more than 8.5% from Friday, Santiment is targeting “Fear of Missing Opportunity (FOMO) Levels Not Seen in Six Weeks.”
Bitcoin supply on exchanges is falling
Obviously, the bullish bias can be seen when watching the supply of BTC drift out of the exchanges. supply of bitcoins held on exchanges is reaching levels close to the levels last seen on January 2, 2021. Prior to that date, the supply-to-exchange ratio had not reached such a low level in almost 18 months. It would be the third time it has reached this minimum level in two years.
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Holiness indicate more good news with the offer on falling trades, “As BTC continues to move trades during these suppressed prices, it is a promising sign that markets have lessened the risk of a sell-off.”
Bitcoin has seen a dramatic resurgence in the last week, following its recent bearish sentiment, the cryptocurrency has dropped below $ 30,000. This level was a key level of support for bitcoin. While this level was briefly broken several times in July. Over the past five days, Bitcoin is up 17.20% to its weekly high of $ 34,800 at the time of writing.
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