Data shows that Bitcoin (BTC) on-chain activity is at its last level before all-time highs in 2021.
In X (formerly Twitter) postal On August 25, Ki Young Ju, CEO of analytics platform CryptoQuant, revealed that Bitcoin velocity is at multi-year lows.
Bitcoin supply stalls at $26,000
At current price levels, Bitcoin is becoming increasingly static—there is less incentive to buy and sell as the overall price trend of Bitcoin for months disappears.
Underscoring this reality is velocity, which is a measure of BTC units moving across the network.
On a daily time frame, the indicator is currently at levels last seen in October 2020, according to CryptoQuant.
“There are two sides to this situation,” Key commented.
“This can be seen as positive because whales are holding it, or negative because it’s not being passed on to new investors.”
Ki cited a similar lack of major trading activity among large investors as part of the market’s “wait and see” mode on BTC.
According to Cointelegraph, as BTC/USD began to rise continuously in the first quarter, and finally reached a 70% increase, the phenomenon of new funds entering the field was already evident at the beginning of the year.
RSI “oversold” signal persists
At the same time, volume data is important for another reason.
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Once a long-term bottom was hit at the end of 2020, the indicator rallied with it, and a year later Bitcoin hit a new all-time high above $20,000 for the first time.
Unlike then, however, bitcoin appears broadly oversold at its current price of $26,000, according to the daily relative strength index (RSI) as measured by Cointelegraph Markets Pro and TradingView.
As Cointelegraph reported, the 12-hour RSI hit a five-year low this month and has yet to recover — again reflecting that a return of investor interest is yet to materialize.
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