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Market Cap $2,635,671,773,921.90
Bitcoin Share 50.16%
24h Market Cap Change $-3.67

Bitcoin may be ready for a rebound – Here’s why

2min Read

Key indicators suggest that Bitcoin could be coming out of its shell, which has been enclosed in a decline thus far.

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  • Bitcoin’s utility has increased amid recent losses, signaling a potential increase in value.
  • Liquidity decreased, but BTC may not drop near $20,000 anytime soon.

As the flagship digital asset, Bitcoin [BTC] may be showing signs of a potential rebound after facing a period of consolidation and downward pressure. The recent dip, which led BTC below $28,000, has caused a change in market sentiment, leading some to question the presence of an early bull market.

Read Bitcoin’s [BTC] Price Prediction 2023-2024

Sights on recovery

However, Santiment revealed that there has been an increase in active addresses, such that the metric as of 3 August surpassed the heights of the last three and a half months. The rise in active addresses suggests a surge in utilizing BTC in transactions.

But it wasn’t just that. The increase coincided with negative sentiment and major transactions in losses. Historically, this is evidence that the period of consolidation could soon come to an end. In turn, BTC might bounce back in the upward trajectory. 

From the chart shared above by the on-chain analytics platform, on-chain volume in profit to loss was down to -0.155. As a key indicator of profitability in the market, this decline implies that loss-taking volume was overwhelming profits made.

Furthermore, the 30-day Market Value to Realized Value (MVRV) ratio was also negative. The MVRV ratio measures the relationship between the market and realized capitalizations. Values in the positive region indicate an advancement toward the market top.

Conversely, when the metric is in negative territory, it implies that BTC could be near the bottom. So, in its press time state, BTC had more tendency to recover than slide again. Another metric to consider in this regard is volume.

The pace is being established

As of this writing, the volume was 12.32 billion. While this metric decreased, it has previously risen to 20.05 billion on 2 August, indicating increased liquidity. Therefore, if the volume experiences another hike, it could set the tone for BTC’s bounce. 

Bitcoin MVRV ratio and BTC volume

Source: Santiment

Meanwhile, Bitcoin’s realized cap was $396.98 billion, according to CryptoQuant. This metric attempts to measure the value of a coin by comparing the network value and the on-chain volume-weighted price.

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When compared with the market cap, on-chain data showed that the market value was far ahead at $567.11 billion. Typically, when the market cap and realized cap are similar in value or the latter is a little higher, it could signal closeness to the market bottom.

Bitcoin realized cap

Source: CryptoQuant

But in this case, BTC may have the potential to rebound. However, considering the press time price as the bottom may not be valid. Hence, if BTC decreases again, it might still be around the $25,000 region.


Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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