Main navigation

Bitcoin (BTC) Prints Key Short-term Signal, Here's What to Pay Attention To

Fri, 08/04/2023 - 12:48
article image
Tomiwabold Olajide
Bitcoin prints promising short-term price signal, but there might be more to watch out for
Bitcoin (BTC) Prints Key Short-term Signal, Here's What to Pay Attention To
Cover image via

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

On-chain analytics firm Santiment has observed that the biggest cryptocurrency by market cap, Bitcoin (BTC), might be printing a key signal that pertains to its short-term price action.

The on-chain analytics platform reports that Bitcoin has just seen its highest level of single-day address activity in three and a half months.

This is as 1.07 million unique addresses that interacted with the Bitcoin network at the start of August, the most since April 17.

In a tweet, Santiment stated that Bitcoin's address activity surged to its highest level in 3.5 months in August. It goes on to say that this utility increase, along with big-loss transactions amid negative sentiment, could be a strong sign that a short-term (at the very least) BTC price bounce is more likely.

The on-chain analytics firm further noted in an image attached to the tweet that traders have been moving BTC at losses comparable to the most they have had all year, indicating capitulation. This might suggest a buy signal, Santiment noted.

Here's what to watch out for 

At press time, Bitcoin remained unchanged, with the world's largest digital asset rising 0.10% to $29,132.

The crypto market has remained relatively flat in recent weeks as optimism over a new wave of Bitcoin exchange-traded fund (ETF) applications faded.

Bitcoin (BTC) Sees Rare Weekly Chart Occurrence, Where Might This Lead?

Santiment noted that lead cryptocurrencies Bitcoin and Ethereum have remained firmly entrenched with the ebbs and flows of the S&P 500. The dollar has risen in the past couple of weeks, which has historically foreshadowed market pullbacks.

Santiment urges traders to look out for a reduced correlation between the two asset classes, stocks and crypto, as a breakout signal. 

Other indicators hint at positivity for Bitcoin. Crypto analyst Ali observes a surge in buy-side demand for BTC as stablecoin inflows to crypto exchanges now surpass BTC inflows, indicating heightened buying interest.

Also, the number of Bitcoin on exchanges is now down 30% from its peak in early 2020.

article image
About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.