- Bitcoin price prediction displays a lackluster retaliation after last week's sudden selloff, though on-chain metrics suggest a bottom may be near.
- Ethereum price and the bullish narrative regarding the upcoming Merge flips as bears threaten to push prices lower.
- XRP price witnesses a turn after a steep decline into the weekly trend. If a rally is to occur, it's now or never.
As August ends, retail traders have spent the week deciphering the cryptomarkets' true intentions. Since last week's sharp decline, the market has been confined within a congestive zone. The mundane price action is likely to resolve in a sharp directional move that many analysts hope will be bullish. Still, an additional decline should not be ruled off the table.
Bitcoin price is close to a bottom
Bitcoin price has traded sideways all week following last Friday's 16% liquidation. At most, the peer-to-peer digital currency has recovered 3% of the losses accrued. The lack of effort displayed post decline is the first anomaly that merits question in the underlining bullish strength. The VolumeProfile indicator confounds the reasonable doubt as transactions continue to taper.
Still, on-chain analysis tools suggest more optimism is taking place underneath the cryptocurrency hood. Specifically, Santiment's Daily Active Addresses Indicator shows that large-cap players have gone dormant this week. At 484,000 active wallets, the reading is a newfound low in terms of activity for the year 2022. The June 2021 low, with a reading at 505,000 active wallets, resulted in one more shallow move from $35,000 to $31,000. Bitcoin price then commenced a 100% increase in profit between July and November 2021.
Santiment’s Price & Active Address Indicator
In the following video, our analysts deep-dive into Bitcoin's price action, analyzing key levels of interest in the market – FXStreet Team