BTC’s recovery may be determined by a change on this front. Here’s why…

  • Bitcoin holders with a 0.1% supply of BTC added more than $1.5 billion in BTC holdings.
  • BTC’s MACD showed some recovery, however, the RSI still remained at the mercy of selling pressure. 

Bitcoin [BTC] managed to end August on a sad note given its drop to the $25k price level on 31 August. Furthermore, at press time, the king of cryptocurrencies didn’t exactly make a positive move on the price charts. It traded at $25,641 at the time of writing which was 1.50% lower over the last seven days, data from CoinMarketCap indicated.

Read Bitcoin’s [BTC] Price Prediction 2023-2024

Despite BTC’s recent drop, its demand on the retail front did show some accumulation from holders. As per a recent tweet from IntoTheBlock, addresses holding 0.1% of the Bitcoin supply have added more than $1.5 billion in BTC holdings. This has happened over the last two weeks.

While this was good news on the retail front, some BTC whales had a slightly different outlook.

While demand from the retail segment did seem good news, there were some disruptions in whale holdings. As can be seen from the chart below, whales that held 10,000 – 100,000 (red) BTC did trim their holdings between 27 and 29 August. However, a recovery was seen in their holdings on 31 August.

Additionally, whales that held 1,000 – 10,000 (yellow) BTC trimmed their balances and witnessed a downfall. As of 1 September, these holders held only 24.09% BTC.

Bitcoin BTC 12.15.54 01 Sep 2023

Source: Santiment

BTC in a fix?

Data from the on-chain intelligence platform showed that BTC’s weighted sentiment witnessed a noticeable drop on 29 August. At press time, it stood at 1.38 which indicated that investors didn’t exactly feel bullish about the king coin.

However, a look at BTC’s social dominance portrayed a different picture. Although the events of the last few days did lead to BTC’s social dominance taking a beating, at press time, this metric showed recovery. A recovery could be taken as an indication of growing dominance on the social front.

Bitcoin BTC 12.47.04 01 Sep 2023

Source: Santiment

But will the growing interest on the social front turn into momentum on BTC’s price front? Let’s take a look.

How much are 1,10,100 BTCs worth today?

Some hope on the price front

Although BTC’s price action did disappoint several traders, relief could be on its way. This was because, at the time of writing, BTC’s Moving Average Convergence Divergence (MACD) showed a bullish crossover. This could be taken as a bullish sign. To add to the sentiment, BTC’s Awesome Oscillator (AO) also flashed green albeit below the zero line.

BTCUSD 2023 09 01 14 34 53

Source: TradingView

However, BTC’s Relative Strength Index (RSI) stayed way below the neutral line. This made it clear that although some indicators showed signs of recovery, selling pressure was the dominant force in the market.

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