Bitcoin Addresses Holding 10+ BTC Surge Even as the Price Goes Low

by
Bitcoin
Bitcoin Addresses Holding 10+ BTC Surge Even as the Price Goes Low

According to Santiment data, the amount of Bitcoin addresses holding 10+ $BTC has ramped up, particularly since the mid-June drop. There has been an increase of 1.12% in these addresses in the past 30 days. In February 2021, 149.2k addresses were holding ten or more $BTC.

BTC’s Bear Phase

In the last 24 hours, Bitcoin has lost 4%. Its trading volume has also decreased by 3.62%. It suggests that its value has dropped below the $20,000 mark. Bitcoin’s all-time high of $68,044.77 was recorded on November 10. It is currently trading at 71.57% below its all-time high.

The recent volatility in Bitcoin has formed a bear flag pattern, which suggests that the market may be entering a new bear phase. This type of move usually leads to a fresh decline. 

The imbalance in the position of the crypto options market is becoming increasingly worrying. It could cause a sell-off if a flag breakdown occurs. The bear flag is a chart pattern resembling an upside-down flag. It shows a strong move down and then a minor price bounce.

Technical analysis dictates that following a flag breakdown, an asset’s price usually drops around the pole portion of the flag. This type of pattern is considered a continuation of the previous bear phase.

Bitcoin’s recent price action has formed a flag, a continuation of the previous bear phase. The flag represents the decline from the high of $22,400 to the low of $17,601. The rising trend lines connecting the June 18 and July 3 lows and the highs of July 8 and 26 are the indicators that suggest that the market is entering a bear flag phase. According to Griffin Ardern, a volatility trader, a breakdown could happen soon.

Is There an Upcoming Rally?

The first major resistance level for Bitcoin is at $20,224, and it should be followed by the high of $20,852 to test the next resistance level at $20,571. A strong rally would then support a return to the $20,500 level.

A rally extension would ideally target the second major resistance level at $21,203 and the third at $22,183. Failure would bring the first major support level to $19,592. Bitcoin should avoid a significant sell-off and maintain its current trading range of around $19,000. The Second major support level at $19,242 is expected to limit the downside, while the third major support level is at $18,263.

Bitcoin price fell below the 50-day exponential moving average (EMA) of around $20,681 in the morning. The 100-day EMA also moved lower, as did the asset’s price. The 4-hourly chart shows that the price has been in a bearish trend.

A break below the 50-day EMA would indicate a potential decline to the $19,000 support area. However, a bullish cross of the 100-day EMA would lead to a potential bounce to the R1 and R2 levels. Currently, the 100-day EMA is at $20,822.

Daily, Bitcoin would need to move through the May 30 high of $32,503 to reach the March 28 high of $48,192. Resistance at $25,000 would be the next major hurdle.

Pushing Bitcoin Back Into The Green

On Thursday, the US will release the new Consumer Price Index. After years of monetary stimulus, market participants expect the index to decline.

If the consumer price index declines, the crypto market may see some relief. Support and resistance levels will continue to be established at around $18,600 and $22,000. Ali Martinez, an analyst, noted that Bitcoin is at an important demand wall. There are around 570,000 addresses that have bought BTC around its current levels. If the market continues to increase, the next resistance level is around $20,900.

Adam Robertson

Adam is outgoing young lad who likes adventures and discovering new things. Despite his boring life, He loves writing about cryptocurrencies and exploring what blockchain technology can do for the coming digital world where all adventures will be virtual.