Bitcoin

<div class="sg-post-des">
  Bitcoin investors sit on their hands at $26,000 — can a velocity rebound reproduce the kind of breakout seen three years ago? 
</div>
<div class="cointelegraph">
 <p>Bitcoin (BTC) on-chain activity is at levels last seen before its run to 2021 all-time highs, data shows.</p>
 <p>In an X (formerly Twitter) post on Aug. 25, Ki Young Ju, CEO of analytics platform CryptoQuant, revealed multiyear lows in Bitcoin <a rel="dofollow" title="velocity" href="https://thebittimes.com/tag/velocity.html">velocity</a>.</p>
 <h2 id="bitcoin-supply-stagnates-at-26-000">Bitcoin supply stagnates at $26,000</h2>
 <p>Bitcoin is becoming increasingly static at current <a rel="dofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> levels — with an overall BTC <a rel="dofollow" title="price" href="https://thebittimes.com/tag/price.html">price</a> trend absent for months, the impetus to buy or sell is reduced.</p>
 <p>Underscoring this status quo is <a rel="dofollow" title="velocity" href="https://thebittimes.com/tag/velocity.html">velocity</a>, which is a measurement of BTC units moving around the network. </p>
 <p>According to CryptoQuant, on daily timeframes, the metric is now at levels last seen in October 2020.</p>
 <p>“There are two sides to this situation,” Ki commented. </p>
 <blockquote>
  “It can be seen as positive since whales are holding onto it, or negative since it’s not being transferred to new investors.”
 </blockquote>
 <figure>
  <img src="https://cdn.thebittimes.com/images/2023/08/26/c1d64d6b9171df603bba66b01e14a16d.webp">
  <figcaption style="text-align: center;">
   <em>Bitcoin velocity chart. Source: CryptoQuant</em>
  </figcaption>
 </figure>
 <p>Ki referred to a similar absence of major trading activity among high-volume investors — part of a narrative that states that the market is in “wait and see” mode on BTC.</p>
 <p>As Cointelegraph reported, new money entering the space was visible at the beginning of the year, as BTC/USD began its Q1 winning streak, which ultimately totaled 70%.</p>
 <h2 id="oversold-rsi-signal-persists">“Oversold” RSI signal persists</h2>
 <p>The volume data meanwhile appears significant for another reason.</p>
 <p><strong><em>Related:&nbsp;Wen moon? Bitcoin halving cycle hints at Q4 as smart money 'buys the rumor'</em></strong></p>
 <p> In late 2020, once it put in a long-term bottom, the metric’s rebound accompanied Bitcoin’s first ascent past $20,000 to new all-time highs a year later.</p>
 <p>Unlike then, however, Bitcoin appears broadly oversold at its current $26,000, per its daily relative strength index (RSI) as measured by&nbsp;Cointelegraph Markets Pro and TradingView.</p>
 <p>As Cointelegraph reported, the 12-hour RSI hit its lowest in five years this month and has yet to recover — again reflecting a return of investor interest still to materialize.</p>
 <figure>
  <img src="https://cdn.thebittimes.com/images/2023/08/26/f124578ff9f668f871a0417bc93ad91e.webp">
  <figcaption style="text-align: center;">
   <em>BTC/USD 1-day chart with RSI. Source: TradingView</em>
  </figcaption>
 </figure>
 <p><em><strong><em>Collect this article as an NFT</em></strong><em> to preserve this moment in history and show your support for independent journalism in the crypto space.</em></em></p>
 <p class="post-content__disclaimer">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. </p>
 <template data-name="subscription_form" data-type="markets_outlook"></template>
</div>

Bitcoin velocity hits lows last seen before Q4 2020 BTC price breakout

Table of Contents

TheBitTimes

Other articles published on Aug 26, 2023

As Cardano Whale Addresses Surge, Institutions Show Interest in THIS Upcoming AI Powered NFT Mark...

Ethereum (ETH) Price Analysis for August 26

Binance Removes Sanctioned Russian Banks from its P2P Platform

NCLH Stock Forecast: Can (NYSE: NCLH) Fall Continue Or Over Soon?

Dubai Crypto Exchange BitOasis Secures Investment from Jump Capital and Wamda – Here's the Latest

Pepe coin loses 20% one week amid rug-pull concerns

Join our free newsletter for daily crypto updates!