As a seasoned crypto investor with years of experience in this volatile market, I have seen my fair share of market fluctuations and trends. This recent price drop in Bitcoin from $68,460 to $65,450 was a minor setback amidst the broader bullish trend. The distribution of BTC by Mt. Gox creditors could have contributed to this pullback, but it’s essential to keep things in perspective.
Bitcoin, the first cryptocurrency, experienced a modest decrease in bullish momentum this week, causing its price to dip from $68,460 to $65,450. Apart from periodic market corrections, this 4.4% decline can be linked to Bitcoin being distributed to creditors following the bankruptcy of Mt. Gox exchange. Nevertheless, the overall trend remains bullish with Bitcoin receiving substantial investment through Spot ETFs and Miners recovering from their capitulation phase. It’s uncertain whether a new record high will occur in August, but the positive trends are likely to persist.
Bitcoin Miners Resurgence Signals Major Breakout From 4 Month Consolidation
The Bitcoin price has been stabilizing over the past four months, according to an examination of the daily chart. This occurs within a widening wedge formation, which suggests increased market indecision. The wedge pattern is characterized by two trendlines that function as moving resistance and support lines.
It’s intriguing that Bitcoin’s price rebound began at the lower trendline of its pattern during the early July reversal. This shift in sentiment propelled the asset up by 23% to reach a value of $65,937. Concurrently, the market capitalization surged to an impressive $1.3 trillion.
The price of Bitcoin could experience a 7% increase if purchasing continues at a consistent rate, potentially leading it to test the resistance trendline of the wedge shape formation.
Recently, the CEO of CryptoQuant, Ki Young Ju, indicated that Bitcoin is currently in an accumulation stage based on on-chain data. Specifically, over the past month, approximately 358,000 Bitcoins have been transferred to long-term storage addresses.
#Bitcoin is in an accumulation phase.
Approximately 358,000 Bitcoins have been transferred to long-term storage wallets over the past month. During July, there was an inflow of around 53,000 Bitcoins into global spot Bitcoin Exchange Traded Funds (ETFs).
As an analyst, I’ve observed that while not every last bitcoin is held in custodial wallets, the accumulation trend among large investors, or “whales,” is striking and at an unusually high degree.
— Ki Young Ju (@ki_young_ju) July 24, 2024
In July, there were approximately 53,000 Bitcoins flowed into global spot Bitcoin exchange-traded funds (ETFs). The massive influx of Bitcoin into these investment vehicles suggests a high degree of conviction among large investors and long-term holders regarding Bitcoin’s future worth.
Hash Ribbons is another valuable indicator that sheds light on Bitcoin’s underappreciated worth. By monitoring the 30-day and 60-day moving averages of Bitcoin’s hash rate, this tool helps identify instances of miner capitulation and subsequent recovery.
As an analyst, I’ve noticed a bullish crossover between the moving average slopes of Bitcoin’s mining data, indicating that miners are bouncing back from a period of capitulation. This is an important signal, particularly in light of Bitcoin undergoing its fourth halving event. Historically, these halvings result in a reduction in miner rewards, leading to a supply shock and potentially driving up the price due to decreased availability of new Bitcoin on the market.
Based on my extensive experience in cryptocurrency market analysis, I strongly believe that the current breakout in Bitcoin (BTC) price presents a compelling opportunity for investors. Having closely monitored market trends and price movements for years, I can confidently say that this trendline breach is a significant development, suggesting potential uptrend continuation. The post-breakout rally could propel the asset to new heights, with a near-term target of $90,000 within reach. My advice, drawing from my past successes and lessons learned in this ever-evolving market, is to carefully consider entering or increasing your position in Bitcoin at this pivotal moment.
Technical Indicator:
- Exponential Moving Average: The BTC price back above daily EMAs (20, 50, 100, and 200) hints the buyers strengthening their grip over this asset.
Moving Average Convergence Divergence: A bullish crossover between the MACD (blue) and signal (orange) lines highlights an active recovery trend.
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2024-07-24 23:38