Bitcoin's trading volume is the lowest in the last nine months

  • The Bitcoin has recovered from his weekly least reaching a maximum of two weeks, even though the daily trading volume has plummeted to their lowest levels since October 2020.

    Bitcoin has managed to regain important ground after the bearish sentiment earlier in the week. The price hit a new two-week high of $ 34,800 on Binance. Despite the constant rise in price, on-chain analysis indicates that bitcoin's daily trading volume is at its lowest point 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 operations will have a greater impact on the markets."
    Bitcoin public sentiment turns positive
    The chain analysis company also indicated that Twitter users have changed their bias on Bitcoin, returning to positive. This implies that most are expecting further bullish momentum in the cryptocurrency development. While Bitcoin has seen an impressive price spike over the weekend that has seen it rise more than 8.5% since Friday, Santiment indicates “levels of fear of missing out (FOMO) that have not been seen in six weeks."

    The supply of Bitcoin on exchanges decreases

    The bullish bias can be evidently seen when looking at the supply of BTC moving off exchanges . The Bitcoin supply that remains on exchanges is reaching levels last seen on January 2, 2021. Prior to that date, the supply ratio on exchanges had not reached that low level in almost 18 months. This would be the third time it has reached this minimum in two years.
    Santiment indicates more good news with the declining supply on exchanges, "As BTC continues to move out of exchanges during these suppressed prices, it is a promising sign that markets have decreased the risk of selling."
    Bitcoin has seen a dramatic revival over the past week, following its recent bearish sentiment, crypto fell below $ 30,000. This level was a key support level for bitcoin. Although this level was briefly broken several times in July. Over the past five days, bitcoin has risen 17.20% to hit its weekly high of $ 34,800 at the time of writing.