Bitcoin price falls to a multi-month low, but data points to a possible short-term bounce

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Despite a flurry of negative news, Bitcoin price still trades above a crucial support level, and data points to signs of a potential bounce.

from Silk Road sparked fears of a sell-off. Later on the same day, the largest crypto-friendly bank confirmed its collapse and planned to liquidate its crypto positions voluntarily. The week’s events sent Bitcoin to a two-week low of $20,050.The flurry of bad news and price drops caused a significant dip in CryptoQuant's Coinbase premium index, which measures the difference in trading prices on Coinbase and Binance. Higher prices indicate stronger demand in the U.S.

Besides negative sentiment, on-chain data shows positive accumulation among the most critical stakeholders, miners and whales. The holdings of Bitcoin miners have been on the rise since the start of 2023, heading for a six-month peak. Glassnode data also shows an increase in the number of Bitcoin wallets with more than 1,000 BTC.The on-chain Realized Price of BTC, which represents the average daily dollars moved through the Bitcoin network, currently sits at $19,800.

 

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