Today, bitcoin is seeing gains of 2.4% as the world’s leading cryptocurrency trades above $9,300. The volume has also seen a slight jump, from about $600 million to crossing $1 billion mark.
However, the digital asset remains in the tight range it has been trading in the past month. There are just 10 days left of July and the market is seeing the tightest monthly price range in bitcoin’s history. Currently, we are at 6% while the all-time low was back in May 2015 at 9%.
It would be interesting to see how the next few days go and if we will stay flat for the rest of the month. Traders and analysts are expecting a bout of volatility which is likely to be on the downside.
BVOL, a token tracking the bitcoin volatility, is also down 69% from its highs. Just like volatility, bitcoin’s exchange inflows have also been falling which historically foreshadows a potential upcoming price run-up or a sell-off.
Given all the focus on altcoins, it makes sense that the overall trading volume of the flagship digital asset continues to slide. Over this weekend, the trading volume hit a daily value of $12.25 billion, marking the “lowest single-day value since October 5, 2019,” a ~9.5-month low, noted Santiment.
Fundamentals are Good
The price of bitcoin is not making any big moves but on-chain fundamentals saw a slight increase last week. Both liquidity and network health increased, “leading to an overall climb in the health of the Bitcoin network.”
The growth has been the result of a steep increase in the number of new entities joining the network which indicates higher adoption, as per Glassnode data. When it comes to liquidity, transaction liquidity saw a slight rise but trading liquidity saw a larger increase thanks to the continued increase in stablecoins supply which provided liquidity to the BTC markets.
Although the accumulation by hodlers is positive, there has been a drop in their accumulation which resulted in a decrease in market sentiment. The confidence of long-term holders is still high with 4.07 million BTC not moved in over five years.
Currently, there are 30.74 million addresses with a balance in BTC, with 20.27 million addresses holding 11.32 million BTC for over a year which is up 24% in the last year. Also, only 39 addresses hold 10.34% of Bitcoin’s circulating supply, as per IntoTheBlock data.
Investing in BTC is now in a “solid proposition,” with Reserve Risk in the green since September 2019 and still declining, “indicating that the risk of investing in BTC is currently low relative to the prospective reward.”
Glassnode’s Compass also remains in the bullish zone for the 8th consecutive week. However, “bitcoin's uncharacteristically stable price casts doubts on its ability to break out past the $10k mark. While on-chain fundamentals remain healthy and overall crypto market liquidity is high, a psychological barrier seems to be blocking a bull run for the time being.”