[Digital Today reporter Yoonseo Lee] Bitcoin may enter a period of price movement on the back of improving on-chain indicators and low volatility.

On July 30 (local time), blockchain media outlet The Crypto Basic reported that while bitcoin prices have recently been weak, network activity and volatility indicators suggest the market is preparing for its next move.

CryptoOnchain, an analyst at on-chain analytics firm CryptoQuant, first noted that bitcoin closed at $63,850.66 on July 28. That is lower than the recent high of $66,520 set on July 21. Still, blockchain data suggested internal market signals are improving regardless of the price trend.

The most-watched indicator was the NVT Golden Cross. The metric compares bitcoin's market capitalisation with network transaction activity to gauge whether the price is low relative to actual network usage. The NVT Golden Cross jumped to as much as 429% above its 90-day average and rose 34.7% over the past week to 0.36.

CryptoOnchain said an undervaluation signal can appear when network activity increases faster than prices, but drew a line at using the indicator alone to assert future price moves. In past market cycles, rises in the metric coincided with recovery phases, but it is difficult to predict direction based on a single indicator.

Exchange fund flows were mixed. On Binance, 5,124 BTC flowed out on July 27, but 1,109 BTC flowed back in on July 28. The pattern suggests market participants are adjusting positions rather than committing to a clear buying or selling direction. CryptoOnchain explained that such abrupt reversals can raise short-term market uncertainty and make bitcoin's next move harder to forecast.

Short-term demand indicators were also not strong. Bitcoin has been moving around the $64,500 level, and Binance funding rates stayed near 0 percent. That signals excessive leverage has not built up in the futures market. The Coinbase premium also fell to -0.11, the lowest level in the past 2 weeks. This is interpreted as U.S. investor demand being weaker than in other markets.

Another CryptoQuant analyst, Ruga Research, said low volatility could be a precursor to price moves. Bitcoin's realised volatility fell to cycle-low levels, and the ADX indicator, which shows trend strength while prices trade in a narrow range, rose gradually. The analyst added that these indicators do not show whether the next move will be up or down.

With past cases of large bitcoin price moves after similar low-volatility periods, the market is expected to watch in the near term for a breakout and its direction. It is read as an example of what data moves first in the stage before the bitcoin market's direction is confirmed.