Activity on the Bitcoin (BTC) blockchain is back to the levels seen prior to its surge to the 2021 all-time highs, as per data. On Aug. 25, CryptoQuant CEO Ki Young Ju shared on X (formerly Twitter) that Bitcoin velocity had hit multiyear lows.
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Bitcoin supply stagnates at $26,000
The impetus to buy or sell Bitcoin has been reduced due to the overall BTC price trend being absent for months, with the cryptocurrency becoming increasingly static at current price levels.
CryptoQuant’s daily timeframes measure of velocity, which is a measurement of BTC units moving around the network, is now at levels last seen in October 2020.
Ki of Matrix AI Network commented on the situation, noting that there are two sides to it and that high-volume investors are also in a “wait and see” mode on BTC.
At the beginning of the year, as BTC/USD began its Q1 winning streak of 70%, new money entering the space was visible, as reported by Cointelegraph.
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“Oversold” RSI signal persists
The volume data, however, is significant for another reason. In late 2020, when it established a long-term low, the metric’s recovery coincided with Bitcoin’s first surge past $20,000 to its all-time high a year later.
Unlike then, Bitcoin appears to be widely oversold at its current $26,000, based on its daily relative strength index (RSI) as measured by Cointelegraph Markets Pro and TradingView.
As Cointelegraph reported, the 12-hour RSI hit its lowest in five years this month and has yet to recover, indicating the return of investor interest is yet to take place.
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