Bitcoin's Bottom Remains Uncertain as Analysts Question Buying Activity

Bitcoin's recent price action has raised questions about whether its bottom was truly fixed in July. According to on-chain data, investors made fewer purchases than expected during the decline. Willy Woo, a seasoned analyst, noted that when Bitcoin fell to around $57,800 on July 1st, only 1.97% of the total supply had been inactive for one to seven days. This rate increased to 2.35% on July 5th.

The HODL Waves indicator, which tracks new buyers entering the market after sharp price drops, did not show a significant increase in buying activity during the July decline. Woo believes that this suggests buying at the bottom may have been slow and limited, or even driven by a single large investor. This is an unusually rare occurrence.

CryptoQuant Research Director Julio Moreno also weighed in on the situation, stating that while there are signs of recovery in demand, on-chain data does not yet confirm a strong and sustainable bull market. The apparent demand indicator has returned to positive territory, but this recovery has not translated into a strong capital inflow.