As an experienced analyst, I believe that the Bitcoin price has shown signs of stabilization at around $53,500, following a significant correction from its all-time high. The recent easing selling pressure and strong demand from long-term holders and whales have provided some support to the asset.
The price of Bitcoin has been fluctuating unpredictably since last weekend, with demand at around $55,000 helping to quell bearish feelings. However, the supply above this level remains, adding uncertainty as the German government reportedly sells off its Bitcoins. With the linked wallet now empty of Bitcoin, a bullish trend may emerge in the short term.
Bitcoin Price Stabilizes at $53.5K Amid Easing Selling Pressure
Between June 5th and July 7th, Bitcoin’s value saw a significant decline, dropping from $71,949 to $53,550, resulting in a loss of approximately 25.6%. This decrease was influenced by several unfavorable factors including large-scale withdrawals from Bitcoin ETFs and the liquidation of Bitcoin from the defunct Mt. Gox exchange, as well as selling actions by the US and German governments.
Bitcoin’s selling pressure has lessened in the past few weeks, with the cryptocurrency finding solid footing around $53,500. This level coincides with the lower boundary of a widening wedge formation on the chart. Although this pattern’s two diverging trendlines signal growing market uncertainty and potential for an extended decline.
However, a bearish breakdown from the lower trendline is needed to fulfill the bearish thesis.
The price of the asset has climbed back up from its previous level of $53,500, representing a gain of 9.8% and now trading at approximately $58,800. Concurrently, the market capitalization has experienced significant growth, reaching a value of around $1.159 trillion.
If the current trend continues, the predicted Bitcoin price suggests a possible increase of approximately 18% that could test the resistance line above it.
Additionally, analysts at CryptoQuant report that Bitcoin investors holding their cryptocurrency for the long term have been buying more at the quickest monthly pace since April 2023. This growth in holdings comes despite additional supply entering the market from sources like seized coins and Mt. Gox distributions. Remarkably, whale-sized Bitcoin (BTC) hoards have expanded at a robust rate of 6.3% per month.
According to data from cryptoquant.com analysts, Bitcoin investors holding for the long term have been purchasing more coins at the quickest monthly pace since April 2023.
Despite an increase in the supply of Bitcoin held by whales due to seized coins and distributions from Mt. Gox, their Bitcoin holdings continue to expand at a steady pace of 6.3%.
Demand remains strong!
— Satoshi Club (@esatoshiclub) July 13, 2024
The surge in Bitcoin ownership by whales is a clear sign of substantial investor interest in Bitcoin, despite an expansion in the overall market supply. Long-term investors and large-scale Bitcoin holders have been actively accumulating, demonstrating their unwavering belief in Bitcoin’s worth and future prospects.
A break above the channel’s upper line during an uptrend could indicate that the correction has ended, paving the way for a significant price surge.
Technical Indicator
- EMAs: With an intraday gain of 1.68%, the Bitcoin price attempts to regain 200D Exponential Moving Average acquiring the initiation signal of trend reversal.
- Vortex Indicator: The VI+(blue) and VI-(pink) slope nearing a bullish crossover indicate the bullish momentum returning to the asset.
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2024-07-13 19:46