Bitcoin[1], the world’s largest cryptocurrency, recorded a significant sell-off between June-July 2022. This, understandably, sent its price tumbling down the charts. In fact, BTC saw its price fall below the $20k-mark, with many holders exiting the network in fear of aggravated losses.
However, a new month could see a new beginning for the crypto. So, what exactly is in store for Bitcoin in August?
Level up
Despite the obvious correction, Bitcoin did bounce back strongly in the latter half of July. At press time, BTC was trading above the $23.7k-mark with a 0.5% hike in 24 hours. In fact, the average amount of BTC circulated in July ended on a neutral note after breaking a 4-month price decline streak.
On-chain analytics platform Santiment used its NVT model to highlight this scenario in the graph below –
Source: Santiment
(NVT stands for Network Value to Transactions Ratio. Using this, one can see if a blockchain network is undervalued or not. When undervalued, the signal is bullish for the price. When overvalued, the signal is bearish.)
Herein, BTC jumped by +18% in July after the NVT model’s growing bullish divergence in May and June finally saw a price bounce. Santiment added[2],
“With a neutral signal now as prices have risen and token circulation has declined slightly, August can move either direction.”
On the other hand, despite this ‘neutral’ conclusion, holders did maintain an undeterred approach towards the flagship coin. For instance, the number of addresses holding Bitcoin highlighted an un-biased relationship.
Source: Glassnode
