The Bitcoin price has been underwhelming in the past few days, reflecting the current state of the cryptocurrency market. On Monday, July 24, investors watched the price of the premier cryptocurrency retreat beneath the $30,000 mark again.
Let’s look at what the on-chain metrics say about this latest fall below the critical price level.
69% Of Bitcoin Holders In Profit After Fall Below $30,000
A data report from IntoTheBlock reveals that roughly 68.96% of Bitcoin holders remained green after the price retreat below the $30,000 mark. There is also an indication of significant buying activity around this price level, with more than 3.4 million wallets acquiring BTC at this zone.
Source: IntoTheBlock via Twitter
According to the market intelligence platform, the $30,000 mark has often served as a psychological support level for investors. However, it remains to be seen whether traders will hold or opt out of their positions if the coin continues its current bearish form.
Interestingly, on-chain data reveals that BTC’s volatility is currently at its historical low, suggesting that a significant price movement is imminent.
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Bitcoin currently trades at $29,225, with a slight 0.4% price increase in the past day, according to CoinGecko data. A look at its broader market reveals that the coin has been on a 5% price decline in the past two weeks.
Since falling below the $30,000 mark on July 24, the price of Bitcoin is yet to recover above this level as it often has in recent times.
Bitcoin Experiences Increased Network Growth And Activity
While the recurrent price dip below $30,000 in July may have raised some concern amongst investors, there are positive signs demonstrating Bitcoin’s resilience and overall stability. For instance, the creation of new addresses recently hit a yearly high, suggesting increased user growth, which might positively influence the coin’s price.
IntoTheBlock’s New Adoption Rate metric further fuels the optimism around Bitcoin. This metric measures the ratio of new active addresses compared to total activity.
According to the analytics platform, there was a sudden spike in the new adoption rate of Bitcoin in July. For context, this rate has been in a range for most of 2023.
Moreover, Bitcoin’s transaction volume has been relatively healthy, despite initial concerns about a potential decline following the Ordinals’ frenzy in Q2 2023.
However, Bitcoin’s NVT (Network Value to Transactions) ratio is unusually high. According to Glassnode, an NVT ratio describes the relationship between the market cap and transfer volume, with a high value often suggesting overvaluation and bearish sentiment.
BTCUSDT trading at $29,295 | Source: daily BTCUSDT chart from TradingView
Featured image from SoFi, chart from TradingView