Bitcoin has recovered from its weekly low as it hits a two-week-high, despite daily trading volume plummeting to its lowest levels since October 2020.
Bitcoin has managed to recover significant ground following its bearish sentiment earlier in the week. The price reached a new two-week high of $34,800 on Binance. Despite the steady climb in price, on-chain analysis indicates that bitcoin’s daily trading volume is at its lowest since October 2020, according to Santiment.
While daily trading volumes are hitting a nine-month low, Santiment indicates that this is not entirely bearish for the price of bitcoin. But it will mean that “individual trades will have a greater impact on markets.“
Bitcoin crowd sentiment turns positive
The on-chain analysis firm also indicated that Twitter users have now shifted their bias on bitcoin, back to positive. Implying that the majority expect more bullish momentum on the cryptocurrency. While bitcoin has seen an impressive price surge over the weekend that has seen it increase by over 8.5% since Friday, Santiment is indicating “levels of fear of missing out (FOMO) that haven’t been seen in six weeks.”
Bitcoin supply on exchanges declining
Bullish bias can evidently be seen when looking at the supply of BTC being moved off of exchanges. The supply of bitcoin being held on exchanges is reaching close to levels last seen on Jan 2. 2021. Before that date, the supply on exchange ratio had not hit that low in almost 18 months. This would make it the third time it’s reached this low in two years.
Santiment indicates more good news with the supply on exchanges declining, “As BTC continues moving off exchanges during these suppressed prices, it’s a promising sign that markets have decreased selloff risk.”
Bitcoin has seen a dramatic revival over the last week, following its recent bearish sentiment, the crypto dropped under $30,000. This level was a key level of support for bitcoin. While this level was briefly broken on several occasions in July. The last five days has seen bitcoin climb 17.20% to its weekly high of $34,800 at time of writing.