Assessing the odds of Bitcoin prices taking a U-turn soon
- Bitcoin’s exchange inflow volume reached a one-month low.
- Whale confidence in BTC was high, while open interest registered a decline.
After a price correction a few days ago, Bitcoin’s [BTC] price chose to move sideways as the trend remained less volatile. Though this can be attributed to the market condition, things can take a U-turn soon. This seemed likely, as a few metrics looked bullish on the king of cryptos.
Read Bitcoin’s [BTC] Price Prediction 2023-24
A look at Bitcoin investors’ activity
Over the last week, BTC’s price chart remained flat as its price only moved marginally. According to CoinMarketCap, BTC was trading at $26,030.19 with a market capitalization of over $506 billion. Not only that, investors’ interest in trading the coin was also low, as its weekly volume dropped by more than 40%.
Trading volume is an interesting metric to consider while talking about price, as it directly represents network activity. A look back suggested that whenever the metric spike, it was followed by a surge in Bitcoin’s price.
For several months, BTC’s total transfer volume was moving sideways. Such incidents also occurred earlier in 2015 and 2020. After those incidents, the metric shot up. Therefore, the chances of a similar episode happening again were high, giving hope for a BTC bull rally in the days to come.
Is the weather finally changing for Bitcoin?
The possibility of BTC’s total transfer volume’s graph to spike seemed likely to happen as quite a few other metrics turned bullish on BTC. For instance, Glassnode Alerts’ tweet pointed out that BTC’s exchange inflow volume reached a one-month low of $29,838,347.22 on 28 August.
— glassnode alerts (@glassnodealerts) August 26, 2023
This meant that not many investors were currently depositing their tokens on exchanges. It also suggested that selling pressure was low, increasing the chances of a price uptrend.
Not only that, but whales’ confidence in BTC also remained high. This was evident from the fact that the number of Bitcoin whales reached a one-month high of 1,608.
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A look at BTC’s on-chain data revealed that the coin’s supply on exchanges dropped while its supply outside of exchanges increased, meaning that investors were buying BTC.
The coin’s MVRV Ratio also improved over the last week, which too was a bullish signal. As per Coinglass, while BTC’s price moved sideways, its open interest fell. A drop in the metric generally leads to a trend reversal, suggesting a price uptrend soon.