Broader cryptocurrency market now experiencing recovery after heavy sell-off driven crypto winter. Major cryptocurrencies have seen notable growth and upsurge from their recent lows. Following the trend, many market observers noted the movements during the past several weeks. Santiment reported a developing bullish divergence earlier in the months of May and June. Additionally, the NVT model reported Bitcoin witnessing around 18% growth in July.
On 1 August, Santiment went on to Twitter and shared the insights of data their NVT model recorded. Apart from more than 18% growth in July and May-June’s bullish divergence, they also outlined the pace of BTC in August. The indicator assumes given the price rise and drop in token circulation, BTC could move at a neutral pace.
The NVT indicator made correct predictions for the July month. Now predicting the Bitcoin price to stay neutral for this month is looked as a sign of consolidation. This is considered to be a time-frame where a range-bound activity gets experienced followed by a long prive move.
Yet the clarification on further move is still due. Considering the token circulation decline, Sentiment predicted it can move either direction in August. This shows that it’s not clear whether the price is going upwards or downwards.
Bitcoin witnessed a drop followed by price upsurge and reaching significant levels after June. This came in the wake of reaction of investors who were expecting the interest rate hikes of Federal Reserves would be halted this year. It created the notion of increased possibility of the US economy to witness a decline.
Undoubtedly, the market had rebounded and came ahead of its recent lows. However, the pressure on the digital assets was quite visible during the last week. Nexo co-founder—Antoni Trenchev said that the month of August might show several other stressing activities in bitcoin price, in addition to its potential struggle in terms of volatility.
Currently bitcoin is trading at 23,040 USD, after slightly more than 7% growth in the last seven days.
Source: https://www.thecoinrepublic.com/2022/08/03/market-indicator-expects-bitcoin-to-stay-neutral-in-august/