Some on-chain data in July signaled the end of the capitulation period and improved investor sentiment. This is stated in ForkLog’s analytical report.
Despite a decline in the price of the first cryptocurrency, the number of addresses with a balance of 1 BTC or more is rising more decisively (+9.4% since the start of the year).
At the end of July, the indicator reached an all-time high of 891,009. Its rise points to a tendency among retail investors to accumulate, and to a potential increase in market participants.
The growth is even more pronounced for addresses in the ‘≥ 1 ETH’ category, up 15.7% since the start of the year.
Against the backdrop of consolidation and the subsequent gradual rebound in Bitcoin’s price, the Puell Multiple indicator began moving out of the “green zone”, indicating deep oversold conditions.
The Net Unrealized Profit/Loss (NUPL) metric also signals the end of the capitulation period and improved investor sentiment. The indicator moved into the “hope/fear” zone, heading toward “optimism”.
On 28 July, the MVRV Z-Score crossed the upper boundary of the deeply oversold zone at 0.1. This is another signal that the market cycle has bottomed.
In early August, Bank of America analysts said that rising crypto outflows from exchanges and net inflows into stablecoins signal a bullish impulse for the market.
Earlier, CoinShares’ Chief Strategy Officer Meltem Demirors predicted that Bitcoin would reach a new all-time high within the next 24 months.
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