{"id":59052,"date":"2023-08-26T11:18:16","date_gmt":"2023-08-26T11:18:16","guid":{"rendered":"https:\/\/egrowonline.com\/?p=59052"},"modified":"2023-08-26T11:18:16","modified_gmt":"2023-08-26T11:18:16","slug":"bitcoin-velocity-hits-lows-last-seen-before-q4-2020-btc-price-breakout","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=59052","title":{"rendered":"Bitcoin velocity hits lows last seen before Q4 2020 BTC price breakout"},"content":{"rendered":"


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Bitcoin (BTC<\/a>) on-chain activity is at levels last seen before its run to 2021 all-time highs, data shows.<\/p>\n

In an X (formerly Twitter) post<\/a> on Aug. 25, Ki Young Ju, CEO of analytics platform CryptoQuant, revealed multiyear lows in Bitcoin velocity.<\/p>\n

Bitcoin supply stagnates at $26,000<\/h2>\n

Bitcoin is becoming increasingly static at current price levels \u2014 with an overall BTC price trend absent for months, the impetus to buy or sell is reduced.<\/p>\n

Underscoring this status quo is velocity, which is a measurement of BTC units moving around the network. <\/p>\n

According to CryptoQuant, on daily timeframes, the metric is now at levels last seen in October 2020.<\/p>\n

\u201cThere are two sides to this situation,\u201d Ki commented. <\/p>\n

\u201cIt can be seen as positive since whales are holding onto it, or negative since it\u2019s not being transferred to new investors.\u201d<\/p><\/blockquote>\n

Bitcoin velocity chart. Source: CryptoQuant<\/em><\/figcaption><\/figure>\n

Ki referred to a similar absence of major trading activity among high-volume investors \u2014 part of a narrative that states that the market is in \u201cwait and see\u201d mode<\/a> on BTC.<\/p>\n

As Cointelegraph reported, new money entering the space<\/a> was visible at the beginning of the year, as BTC\/USD began its Q1 winning streak, which ultimately totaled 70%.<\/p>\n

\u201cOversold\u201d RSI signal persists<\/h2>\n

The volume data meanwhile appears significant for another reason.<\/p>\n

Related:\u00a0Wen moon? Bitcoin halving cycle hints at Q4 as smart money ‘buys the rumor’<\/a><\/em><\/strong><\/p>\n

In late 2020, once it put in a long-term bottom, the metric\u2019s rebound accompanied Bitcoin\u2019s first ascent past $20,000 to new all-time highs a year later.<\/p>\n

Unlike then, however, Bitcoin appears broadly oversold at its current $26,000, per its daily relative strength index (RSI) as measured by\u00a0Cointelegraph Markets Pro<\/a> and TradingView<\/a>.<\/p>\n

As Cointelegraph reported, the 12-hour RSI hit its lowest in five years<\/a> this month and has yet to recover \u2014 again reflecting a return of investor interest still to materialize.<\/p>\n

BTC\/USD 1-day chart with RSI. Source: TradingView<\/em><\/figcaption><\/figure>\n

Collect this article as an NFT<\/a><\/em><\/strong> to preserve this moment in history and show your support for independent journalism in the crypto space.<\/em><\/em><\/p>\n

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.\n<\/p>\n<\/div>\n


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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 […]<\/p>\n","protected":false},"author":1,"featured_media":59053,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[37],"tags":[50,528,194,259,1439,195,17143],"class_list":["post-59052","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin","tag-bitcoin","tag-breakout","tag-btc","tag-hits","tag-lows","tag-price","tag-velocity"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2023\/08\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDgvN2EzMTI3NGYtM2NhZS00ODFjLWEwNjQtM2NjZmYyNDQ5Y2IxLmpwZw.jpg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/59052","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=59052"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/59052\/revisions"}],"predecessor-version":[{"id":59054,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/59052\/revisions\/59054"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/59053"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=59052"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=59052"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=59052"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}