• Bitcoin (BTC) on-chain activity is at levels last seen before its run to 2021 all-time highs, data shows.
• Velocity is a measurement of BTC units moving around the network and is now at multiyear lows.
• Bitcoin appears oversold at current price levels, with its daily relative strength index (RSI) hitting five-year lows this month.
Bitcoin Velocity Hits Lows Last Seen Before Q4 2020 BTC Price Breakout
Investors Sit on Their Hands as Bitcoin Price Remains Steady at $26,000
Bitcoin (BTC) on-chain activity is at levels last seen before its run to 2021 all-time highs, data shows. In an X (formerly Twitter) post on Aug. 25, Ki Young Ju, CEO of analytics platform CryptoQuant, revealed multiyear lows in Bitcoin velocity.
Bitcoin Supply Stagnates At $26,000
Bitcoin is becoming increasingly static at current price levels — with an overall BTC price trend absent for months, the impetus to buy or sell is reduced. Underscoring this status quo is velocity, which is a measurement of BTC units moving around the network. According to CryptoQuant, on daily timeframes, the metric is now at levels last seen in October 2020.
„There are two sides to this situation,“ Ki commented. „It can be seen as positive since whales are holding onto it, or negative since it’s not being transferred to new investors.“
„Oversold“ RSI Signal Persists
The volume data meanwhile appears significant for another reason. In late 2020, once it put in a long-term bottom and the metric’s rebound accompanied Bitcoin’s first ascent past $20,000 to new all-time highs a year later.
Can A Velocity Rebound Reproduce The Kind Of Breakout Seen Three Years Ago?
With an overall lack of major trading activity among high – volume investors and an “oversold” signal present , will new money entering the space be enough for a breakout similar to what occurred three years ago ? For now , investors appear content sitting on their hands near $ 26k — but that could change very quickly .