Market appeared many signs of uncertainty in the first half of the week.

Price down slightly from the current channel, but this pullback has noticeably lower volume and lower range. Current performance of in line with the uncertain situation as to whether it will continue to rise or reverse.

Some analysts expect the market to continue to look for downside as the US Federal Reserve ramps up quantitative easing. This result is expected to continue to put pressure on risky assets such as Bitcoin.

On the other hand, significant price increase following the results of the last FOMC (U.S. Federal Open Market Committee) meeting.

It is impossible to predict when this conflicting scenario will culminate. The price of $22,863 on Aug. 4 is right in the middle of the current support and resistance range.

Source: TradingView

MFI indicator of leveled off near the 50% level and the RSI shows the same result.

This signals a decrease in the output current. A closer look at .'s on-chain indicators Bitcoin can help understand the market.

Bitcoin ready to accumulate

Whale strengthens accumulation during the decline, thus supporting the current range.

The number of addresses holding more than 100 BTC rebounded from a monthly low of 15,819 on July 28 to 15,856 on June 3.

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The source:

The “hibernate” Bitcoin Index also reveals that most of the BTC accumulated, especially at the end of July, has yet to move. The indicator is currently close to a four-week low. This is a sign that most holders are optimistic about the possibility of a price increase.

Accumulation near current prices is confirmed through a reasonable profit drop in the first week of August.

This metric spiked near mid-July as investors withdrew from the previous rally. The futures market also saw a similar wave of demand.

The open interest (open interest) futures index recorded a significant increase in the past 4 weeks.

bitcoin
The source:

These observations explain the rising floor price of Bitcoin. Whales accumulating BTC is a healthy sign that could benefit the bulls.

However, the market is still waiting for the uncertainty to become clear, meaning there is still room for a drop in prices.

Bitcoin is likely to retest the current ascending support line by the end of the week.

However, the possibility of a bounce back will depend on whether the market relies on prevailing sentiment.

65% Bitcoin's circulating supply has not moved in the past 12 months

The notion that an active market is healthy is not always true. While a certain amount of activity on the network can certainly indicate how stable it is, a lack of activity can also imply an upcoming bullish trend.

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Take, for example, the Bitcoin network.

The drop in the price of Bitcoin does not affect the majority of the circulating supply. According to data from Glassnode, more than 65% circulating supply (about 12.35 million BTC) has not moved for at least 1 year. As such, the supply that has been idle for at least 2 years increases significantly and even higher for at least 3 years.

According to data from Glassnode, 8.55 million BTC (45% circulating supply) has not moved for at least 2 years, while 7.22 million BTC (38% circulating supply) has not moved in 3 years.

Zooming out further the supply chart has not changed in 5 years or more, it tends to hit an all-time high of 4.37 million BTC, or 23% of supply.

bitcoin
The source: Glassnode

This shows an interesting trend – investors are holding coins through the bull and winter markets . Bitcoin's ATH bull run in November 2021 has not reduced the percentage of Bitcoin held for more than a year, and so does the ongoing bear market. The data shows that investors have a low time frame preference and are whether more or less.

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