Bitcoin briefly touches $30k amid whale transactions
Crypto.news
Published Aug 02, 2023 08:31AM ET
Updated Aug 02, 2023 09:00AM ET
Bitcoin briefly touches $30k amid whale transactions
Crypto.news - Bitcoin’s (BTC) brief recovery of the $30,000 mark after a major drop has sparked significant interest among market observers.
During this period, key metrics such as whale transactions and weekly price volatility have surged, indicating potential market sentiment and activity shifts.
Whale transactions involving Bitcoin worth at least $1 million have witnessed a remarkable rise, per Santiment data. Prominent institutional investors or high-net-worth individuals generally initiate these transactions. Their trading activity can exert considerable influence on the market due to their substantial holdings.
BTC price, whale transaction count and volatility – Aug. 2 | Source: Santiment
From July 27 to August 1, the market observed a decrease in BTC whale transactions. However, amid the recent Bitcoin price recovery, the whale transaction count experienced reasonable spikes.
BTC price volatility surges/h2
Another crucial metric to consider is Bitcoin’s price volatility, which measures the price fluctuation within a specific timeframe.
On August 1, a sharp drop in weekly price volatility was observed as BTC plummeted below $29,000. Interestingly, amid this decline in weekly price volatility, Bitcoin witnessed a remarkable spike in volatility in the daily timeframe.
However, weekly volatility surged again after the subsequent price recovery. Elevated volatility often indicates increased uncertainty and may lead to rapid changes in market sentiment.
The interplay between whale transactions and volatility can significantly affect the market’s direction. A surge in whale transactions amid rising volatility may signal the potential for more significant price movements in the near future.
While the current metrics have not yet attained the high levels observed between July 24 and July 27, the gradual increase in a 24-hour timeframe indicates a continuous rise in market activity.
Meanwhile, Bitcoin has relinquished the $30,000 territory, dipping below it shortly after the latest recovery. Despite the drop, BTC continues to hold above the $29,000 zone, currently trading for $29,525 at the reporting time. The asset seeks to leverage this position for the next run to $30,000.
This article was originally published on Crypto.news
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