On Sunday, Bitcoin reached a 12-day high of $34,800. The daily volume of Bitcoin has dropped to a nine-month low. As supply on exchanges decreases, market sentiment has moved to optimistic. The Trust Project is a worldwide group of news organizations working to establish transparency standards. Despite daily trade volume plunging to its lowest levels since October 2020, Bitcoin has recovered from its weekly low and is now at a two-week high.
Following its adverse attitude earlier in the week, Bitcoin has managed to regain a large amount of ground. On Binance, the price hit a new two-week high of $34,800. According to Santiment, despite the steady rise in price, on-chain data shows that bitcoin's daily trade volume is at its lowest since October 2020.
While daily trade volumes have dropped to a nine-month low, Santiment believes this isn't altogether gloomy for bitcoin's price. Individual trades, on the other hand, will have a stronger impact on markets.
The Bitcoin community is becoming more positive.
Twitter users' attitudes of bitcoin have moved back to favorable, according to the on-chain analysis firm. Inferring that the majority of people believe the cryptocurrency will continue to rise in value. Santiment is revealing "levels of fear of missing out (FOMO) that haven't been witnessed in six weeks" despite bitcoin's remarkable price spike over the weekend, which has seen it increase by nearly 8.5 percent since Friday.
The supply of bitcoin on exchanges is dwindling.
When looking at the supply of BTC being shifted off of exchanges, there is a clear bullish bias. The amount of bitcoin owned on exchanges is approaching levels last seen on January 2, 2021. The supply-to-exchange ratio had not been that low in approximately 18 months prior to that day. This would be the third time in two years that it has dropped to this low.
With the supply on exchanges dropping, Santiment sees further good news: “As BTC continues to move off exchanges during these reduced prices, it's a promising sign that markets have decreased selloff risk.”
Following its recent adverse attitude, Bitcoin has made a spectacular recovery over the last week, dropping below $30,000. This was a critical level of bitcoin support. During the month of July, this level was momentarily broken on many times. Bitcoin has risen 17.20% in the last five days to a weekly high of $34,800 at the time of writing.
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