Market appeared to have recovered from its lowest point
According to the on-chain analytics firm sentimentThe bullish divergence in May and June for its NVT model, respectively, resulted in an 18% monthly gain for bitcoin in July.
After predicting correctly in July, this indicator is now signaling a neutral trend for Bitcoin’s price in August, which is indicative of consolidation. Consolidation refers to a period of range-bound activity after an extended price move.
However, given the decline in token circulation, Santiment says, “August could move in either direction,” meaning that either the price is on an upward move or August is on a downward trend.
Bitcoin fell after reaching its highest levels since mid-June on Saturday as investors believed that the Federal Reserve would cease raising interest rates by year’s end as a result of growing signs of a downturn in the U.S. economy. The market appeared to have recovered from its lowest point.
Nevertheless, at the beginning of the week, the cryptocurrency was under pressure.
Bitcoin was down 3.39% to $22,994 at the time of writing after reaching a high of $24,676 on July 30. Its July gain of 18% marked the highest since October 2021.
With the potential for additional bouts of volatility, August “promises every bit as belly-churning for bitcoin,” said cryptocurrency lender and Nexo co-founder Antoine Trenchev.
In late June and early July, Bitcoin dropped below $20,000 due to worries about interest rate hikes, inflation and contagion fears owing to the collapse of the Terra/Luna ecosystem and hedge firm Three Arrows Capital.
Bitcoin sees market influx in July with $474 million entering
According to CoinShares, bitcoin had $85 million in inflows last week while short-bitcoin saw an outflow of $2.6 million. This was the first week of outflows after a five-week inflow during the most recent bear market.
It mentions that July’s $474 million in monthly inflows was the highest so far this year, virtually making up for June’s $481 million in outflows.
