As a seasoned crypto investor with several years of experience under my belt, I have witnessed the volatility and unpredictability of the cryptocurrency market. However, the current trend in Bitcoin has been particularly intriguing. After observing the recent V-shaped recovery in the daily time frame, which has seen a 26.2% growth from $53,500 to $67,617, I am optimistic about the asset’s potential for further gains.
The cryptocurrency market exhibits reduced volatility during the weekend as Bitcoins price makes efforts to steady itself following the weekday surge. This stabilization can be linked to substantial investments in Spot Bitcoin ETFs and hoarding by large investors, or “whales.” According to current trends, Bitcoin’s price analysis indicates a potential 9.26% leap to a new all-time high of $73,750, making it an intriguing proposition for those considering an investment. However, it is crucial to remember that investing in cryptocurrencies carries inherent risks and market conditions can change rapidly. Therefore, careful consideration and thorough research are essential before making any investment decisions.
Bitcoin Price Analysis: Key Levels to Watch Amid Market Recovery
Over the past three weeks, Bitcoin’s price trend has followed a V-shaped pattern in the daily chart, indicating a robust and quick recovery from its previous low at $53,500. This bullish reversal propelled the asset to reach a new peak of $67,617 within a week, resulting in a substantial 26.2% price increase.
During the weekend, Bitcoin encountered resistance at the $67,277 mark and dropped 0.45%, now trading at $66,868. The total market capitalization hovers around $1.319 trillion.
Should the positive trend continue, Bitcoin’s price may surge by an additional 5.6%, approaching the significant barrier presented by the broadening wedge formation’s major resistance. This chart configuration, characterized by diverging trendlines acting as underlying support and resistance, has played a crucial role in guiding Bitcoin during its four-month period of sideways movement.
If the price breaks out above the existing trendline, it could be a sign that the current upward trend will persist.
Based on the information from Lookonchain, a well-known source of on-chain data, there’s been a significant Bitcoin purchase spree by a major investor, resulting in a sizable accumulation within a short time frame.
The smart money bought 213.78 $BTC($14.48M) again 9 hours ago!
He has bought 677 $BTC($45.6M) in the past 4 days.
— Lookonchain (@lookonchain) July 21, 2024
Over the last four days, a shrewd Bitcoin investor has bought a sum total of 677 Bitcoins, equating to around $45.6 million. The most recent deal was completed merely nine hours prior, involving the acquisition of 213.78 Bitcoins worth approximately $14.48 million. This series of substantial purchases highlights the faith of prominent investors in Bitcoin’s prospect for a substantial price increase.
Enhancing the optimistic perspective, Nate Geraci, president of The ETF Store, underscored the substantial impact of the U.S.-listed spot Bitcoin ETF. At present, this ETF owns around 900,000 Bitcoins, equating to approximately 4.3% of the entire Bitcoin supply. The market value of these assets is estimated to be around $60 billion.
Now *900,000+* bitcoin held by US-listed ETFs…
4.3% of total btc supply.
Approx $60bil in assets.
$17bil net new inflows since January launch.
via @apollosats
— Nate Geraci (@NateGeraci) July 20, 2024
After its debut in January, the ETF has attracted approximately $17 billion in investments. This significant influx suggests robust institutional backing and faith in Bitcoin.
If the price of Bitcoin (BTC) breaks out from its current wedge pattern, it could fuel increased buying activity, potentially pushing the price upwards towards a target of $80,000. Furthermore, if this bullish trend continues beyond that point, BTC’s price may even reach as high as $90,000.
Technical Indicator:
- Pivot Levels: The traditional pivot indicator hints that Bitcoin could witness overhead resistance at $77800 and $83782 in price discovery mode.
- ADX: The downsloping ADX slope hints the prevailing bearish trend is losing its momentum.
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2024-07-21 15:08