The crypto market has been struggling with prolonged sideways movement in recent months. Since March 2024, the market has failed to make a successful breakout above previous peaks, leaving investors frustrated. According to a recent report by CryptoQuant analyst Crypto Dan, this continuous pattern of stagnation leads many to wonder when the market might see a significant rebound. While there are some short-term factors that may provide relief, the overall sentiment in the crypto space remains cautious. Related Reading: Bitcoin Eyes $68,000 In September: Could This Be The Turning Point? Is The Crypto Market Stuck? One key observation made by Crypto Dan is the emergence of a “Dead Cross” on the short-term and long-term SOPR (Spent Output Profit Ratio) moving averages. This is a bearish signal in technical analysis, indicating that selling pressure is likely to outweigh buying pressure. It suggests that traders may be locking in profits rather than betting on further gains. The persistence of this trend as highlighted by Dan raises questions about whether a meaningful recovery is on the horizon, or if the market is headed for a longer period of consolidation. Looking ahead, one potential catalyst Dan pointed out for the market movement is the upcoming US Federal Reserve meeting on September 18, where a base rate cut is anticipated. Historically, rate cuts have tended to inject positive sentiment into financial markets, including cryptocurrencies. A reduction in interest rates could result in an influx of liquidity into riskier assets like Bitcoin and altcoins, as investors seek higher returns. This could trigger a short-term rally, offering some relief from the stagnation observed in recent months. However, Dan warns that while a short-term rebound might occur, it may not lead to a sustained bullish trend unless there is a significant shift in market conditions. When Will A Breakout Finally Happen? The fundamental outlook for the crypto space remains mixed, with macroeconomic factors such as inflation and recession concerns still weighing heavily on investor sentiment. If these factors do not improve, Dan noted that it is likely that frustrating, low-volatility movements could persist well into 2024. In his words: Due to the expected US base rate cut on September 18, a short-term rebound due to positive market sentiment can be expected, but if the market atmosphere is not significantly reversed, it is highly likely that frustrating movements will continue in 2024. Although actively monitoring the crypto market at this current state may feel discouraging. However, Crypto Dan emphasizes that “patience” will be key for long-term investors. Related Reading: Bitcoin’s Breakout Blueprint: Analyst Reveals Roadmap For Imminent Surge According to Dan, while the potential for a short-term rally exists, broader market trends suggest that a more meaningful and sustained uptrend may not occur until 2025. Featured image created with DALL-E, Chart from TradingView
Following its renewed peak above $73,000 back in March, Bitcoin has been experiencing a prolonged period of price stagnation ever since, leaving many investors wondering about the potential for future movements. According to a recent analysis by a CryptoQuant analyst under the pseudonym ‘Avocado,’ this stagnation may bear a resemblance to a similar pattern observed in 2019. Related Reading: Bitcoin’s Recovery Rally: Breaking Through This Level Is Key To Bullish Momentum – Analyst Why Is Bitcoin Price Still Below $60,000? In the report uploaded on the CryptoQuant QuickTake platform, the analyst suggests that the lack of volatility in Bitcoin’s price is largely due to the increased prevalence of over-the-counter (OTC) trading compared to exchange-based trading, which has reduced the frequency and intensity of price fluctuations. This conclusion was made after the analyst assessed one of Bitcoin’s key metrics—lifespan of UTXOs (Unspent Transaction Outputs)—which is used to analyze investor behavior. By examining UTXOs held for less than six months, the analyst classifies these holders as new investors and compares their behavior to similar periods in previous market cycles. The data reveals a small peak in UTXOs under six months, which closely mirrors a structure seen in 2019. These new investors likely entered the market around March of this year when Bitcoin’s price peaked, according to the analyst. However, as the price has remained stagnant, many of these investors may have exited the market due to losses, while others have transitioned into the six-month-and-above holding category, the analyst added. The 2019 Pattern And What It Signals For Current Market The analyst, Avocado, further explained that this similar pattern, which was also observed in 2019, occurred around the time of the halving event, which eventually led to a new all-time high (ATH) for Bitcoin. However, it took approximately 490 days for Bitcoin to reach this ATH, a timeline that was also influenced by the onset of the COVID-19 pandemic. With Bitcoin’s price stuck in a large range for more than six months, the current situation raises questions about the potential for a similar outcome. Related Reading: Is Bitcoin’s Rally Over? Top Analysts Predict Imminent Price Corrections The analyst remains confident in the long-term upward trend of Bitcoin but advises caution in the short term. Avocado noted: Currently, Bitcoin’s price has been stuck in a large range for more than six months, with no clear trigger for a breakout. While I have no doubt about the long-term upward trend, in the short term, I believe it’s wise to temper expectations and closely monitor the market. Historically, the influx of capital from new investors has been a critical condition for Bitcoin’s price increases. Featured image created with DALL-E, Chart from TradingView
Bitcoin, after experiencing a blood bath last Month, several analysts have re-analyzed its price action to see what this new month of September might hold for the Bitcoin Market. Amongst them, a renowned crypto analyst known as Mags on X has recently shared an insightful perspective on Bitcoin’s current market behavior in one of his latest posts. Related Reading: Bitcoin’s Momentum at Risk? NVT Golden Cross Sends Warning Signals Is Bitcoin Primed For A September Rally? Mags pointed out that Bitcoin has been in a long consolidation phase since March and is now entering its seventh month. He drew a parallel to a similar pattern observed last year, where Bitcoin also began its consolidation in March, only to start recovering by September. According to Mags, over the following seven months, Bitcoin experienced a 195% increase in price. So far, this historical pattern has raised whether September will again serve as a pivotal month for Bitcoin. #Bitcoin – september is a bearish month ? We all know Bitcoin has been stuck in a long consolidation phase for the past few months. This sideways PA began in March and is still ongoing. But what if I told you we saw a similar pattern last year? Back then, the consolidation… pic.twitter.com/8PJ8MMNEUR — Mags (@thescalpingpro) September 2, 2024 Bitcoin is showing signs of a bearish trend, having fallen below the psychological $60,000 level. Over the past week, the cryptocurrency has seen a 9.9% decline. However, there seems to be a slight recovery in progress, with BTC currently trading at $58,411, up 0.3% in the past 24 hours. Next Moves Expected From BTC In response to Bitcoin’s recent price action, prominent crypto analyst Captain Faibik offered his outlook, suggesting that BTC is still moving within a bullish flag pattern. According to Faibik, there is a possibility that Bitcoin may test the $54,000 support area once again. He emphasized the importance of bulls defending this level, as a bounce back from $54,000 could potentially lead to a rally up to $68,000 in September. This scenario aligns with Mags’ theory that September could be a turning point for Bitcoin, mirroring last year’s price recovery. Adding to the discussion, another well-known analyst, Willy Woo, provided insights on the supply dynamics affecting Bitcoin’s price. Woo noted that the influx of BTC from sources such as Germany’s Mt. Gox and the US Department of Justice is gradually being “absorbed” by the market. Related Reading: Bitcoin’s Breakout Blueprint: Analyst Reveals Roadmap For Imminent Surge He also observed that paper BTC bets are declining, which he interprets as a positive sign. Overall, Woo suggested that the market sentiment has shifted from bearish towards neutral, indicating that the worst sell-off may be over. Featured image created with DALL-E, Chart
Could Bitcoin see a correction below $40,000 before breaking out toward a six-figure valuation?
Bitcoin is currently experiencing volatile and uncertain price action, with the latest 10% correction raising concerns among investors. While this decline is smaller than the 30% retracements seen in recent months, it is causing significantly more damage to market sentiment as investors grow increasingly weary of the ongoing market dynamics. Related Reading: Bitcoin (BTC) Stumbles […]
Bitcoin’s summer illiquidity could carry on into September, but lower interest rates could kickstart the real bull market in early 2025, according to analysts.
Bitcoin market performance and historical patterns continue to interest analysts and investors, with many of them using this to gauge what and how the asset is likely to move in the future. According to Mags, a well-known crypto analyst, Bitcoin may follow a familiar pattern observed in previous cycles, where the cryptocurrency reaches its peak several months after the halving event. Related Reading: Bitcoin Price To ‘Chop’ Around This Range Until Q4, Analysts Say Peak Will Be 2025, But What Price Target? In a recent post on X, Mags highlighted the notable gains Bitcoin experienced in the aftermath of previous halvings, suggesting that if history repeats itself, Bitcoin could top out between June and October 2025, approximately 400-550 days from now. Mags noted that in the 2013 cycle, Bitcoin surged by more than 9,500%, peaking 406 days after the halving. The 2017 cycle also saw a 4,100% increase, with Bitcoin topping out 511 days post-halving. Additionally. in 2021, Bitcoin’s gains were more modest, with a 636% increase, peaking 546 days after the halving. Currently, Bitcoin is in a consolidation phase following its recent halving, and Mags speculates that even if the growth in this cycle is just half of what was seen in previous cycles, it could still result in a 300% increase from current levels, pushing Bitcoin’s price to around $200,000. #Bitcoin – When Will Bitcoin Top Out? Bitcoin has shown a pattern in previous cycles where it tops out several months after the halving event. In 2013, Bitcoin pumped by over 9,500% and peaked 406 days after the halving. In 2017, it climbed by 4,100%, reaching its peak 511… pic.twitter.com/VMuZ88BJ5M — Mags (@thescalpingpro) August 26, 2024 Bitcoin Current Market Performance Despite the optimistic long-term outlook, Bitcoin’s short-term performance has shown weakness. Over the past 24 hours, Bitcoin’s price has declined by 2.1%, bringing it down to a current trading price of $61,911 at the time of writing. This decline is reflected in Bitcoin’s market capitalization, which has seen approximately $27 billion flow out over the same period. Interestingly, despite the price drop, Bitcoin’s daily trading volume has increased significantly, rising from $24 billion yesterday to over $28 billion today. In addition to these market movements, there has been notable activity in Bitcoin’s exchange netflows. A recent report from a CryptoQuant analyst highlighted several instances of large negative netflows, where significant amounts of Bitcoin were withdrawn from exchanges. The report pointed to three dates: July 5th, July 16th, and August 27th, where 60,000 BTC, 50,000 BTC, and 45,000 BTC, respectively, were withdrawn from exchanges. Related Reading: Data Shows Sellers Have Returned To Bitcoin: Is A Major Price Drop On The Horizon? It is worth noting that large negative netflows like these are generally seen as a bullish indicator, as they suggest that investors might be moving their Bitcoin off exchanges to hold for the long term, potentially reducing selling pressure in the market. Featured image created with DALL-E, Chart from TradingView
As August draws to a close, Bitcoin price action has caught the attention of market analysts who believe the current monthly candle could be one of the most significant in the cryptocurrency’s history. The end-of-month price movement has sparked discussions about a potential trend reversal, particularly among those closely following technical analysis. However, while some analysts are optimistic, others urge caution, reminding traders that the month is not over, and external factors could still influence Bitcoin’s trajectory. Related Reading: Bitcoin And NASDAQ Show Tight Correlation: What Does This Mean For BTC? August Candle Shows Dragonfly Doji One of the most intriguing aspects of the current Bitcoin price chart is the formation of a potential “dragonfly doji” candlestick on the monthly time frame. In a recent post on X, an analyst from HODL15Capital referred to this candle as “arguably the most interesting monthly candle in Bitcoin’s history.” Notably, the dragonfly doji is a Japanese candlestick pattern that typically indicates a potential reversal in price direction. It forms when the open, high, and close prices are nearly the same, but the low price is significantly lower, creating a long lower shadow. This pattern often suggests that sellers were in control during the early part of the month, but buyers pushed the price back up by the close, signaling strong bullish momentum. Bitcoin Bulls About To Take Over? The potential dragonfly doji on Bitcoin’s monthly chart has sparked optimism among some traders and analysts who believe it could indicate a strong reversal in Bitcoin’s price trend. Javon Marks, a well-known crypto analyst on X, commented on the significance of this monthly candle. He noted that if Bitcoin closes the month with a dragonfly doji, it would represent the largest seller rejection (the strongest bull presence) since March 2020. Marks further pointed out that a similar pattern in 2020 preceded one of Bitcoin’s most significant bullish movements during the previous bull cycle, suggesting that history could repeat itself. However, while forming a dragonfly doji is often seen as a bullish signal, it’s worth noting that it does not guarantee future price action. The pattern indicates that the market has rejected lower prices, but it doesn’t necessarily mean a sustained uptrend will follow. As some have cautioned, the month is not yet over; therefore, the candles are yet to close, and a lot can change in the 4 days of trading left. Related Reading: Expert Explains Why Bitcoin Price Could Explode To $1 Million This Cycle Additionally, fundamental factors such as macroeconomic events, particularly the US news event set to occur this week or perhaps market sentiment, can all play a significant role in determining Bitcoin’s next move. Featured image created with DALL-E, Chart from TradingView
Bitcoin has been experiencing a notable increase in market activity, with recent movements indicating that sellers are becoming more active. A Major Price Drop On The Horizon? According to a post by XBTManager, a contributor on the CryptoQuant QuickTake platform, Bitcoin’s price rise last week, which saw it temporarily break out of its recent range, was accompanied by a surge in volatility. Related Reading: Bitcoin Poised for a 200% Rally as Analyst Spot Rare Bullish Pattern This uptick in activity included a significant transfer of Bitcoin by short-term holders, with 33,155 BTC moved, as indicated by the 1-week to 1-month spent output age bands. This transfer of assets, particularly by short-term holders, could signal an immediate selling pressure on the market, potentially leading to a short-term price pullback. Meanwhile, despite the chances of a major drop on the horizon given the gradual increase in sellers, Bitcoin has recently managed to reclaim the $65,000 mark, albeit briefly; it has since retraced and is currently trading below this level. As of the time of writing, Bitcoin is holding steady at around $63,000, reflecting a 1.2% decline over the past 24 hours. The report suggests that if the activity within these age bands continues to increase, traders should exercise caution as the selling pressure could intensify, leading to further volatility in the Bitcoin market. Short Term Price Outlook On Bitcoin Amid these developments, renowned crypto analyst Ali has shared his short-term outlook for Bitcoin, focusing on its current price action. In a post published today on X, Ali noted that Bitcoin appears to be trading within a parallel channel in the lower time frames. For context, a parallel channel refers to a chart pattern that forms between two parallel lines, where the price of an asset moves back and forth between the upper and lower boundaries of the channel. The upper boundary typically acts as resistance, while the lower boundary supports. Analysts often look for breakouts above or below these channels to signal potential reversals or continuations of a trend. Related Reading: Is Bitcoin Ready to Soar? Key Indicators Signal Potential $72K Target Ali pointed out that if Bitcoin’s support at $63,500 holds, the cryptocurrency could rebound to $64,200 or even $64,800. However, if the support level fails, a drop to $62,800 might be on the horizon. #Bitcoin seems to be trading within a parallel channel on the lower time frames. If the $63,500 support holds, $BTC could bounce back to $64,200 or even $64,800. However, if it breaks, a drop to $62,800 might be on the horizon! pic.twitter.com/4hROkZxQNp — Ali (@ali_charts) August 26, 2024 Featured image created with DALL-E, Chart from TradingView
Bitcoin appears to be entering a rebound phase, given its recent increase that brought the asset’s price close to the $66,000 mark. Particularly, after briefly touching a 24-hour high of $64,893 earlier today, Bitcoin has retraced slightly, now trading at $63,786, reflecting a minor 0.2% decline over the past day. Despite this slight pullback, analysts remain divided on the immediate future of Bitcoin, with some pointing to key technical levels that could determine the next significant move. Related Reading: Crypto Analyst Sounds Alarm: Here’s Why It’s Your ‘Last Chance To Buy Bitcoin’ Next Step For Bitcoin Renowned crypto analyst, Emperor on X, shared his insights on Bitcoin’s price action earlier today. In a detailed post, Emperor noted that Bitcoin had successfully bounced from a critical support zone of around $58,000, which he had previously identified as a potential buy zone. According to Emperor, Bitcoin has now reclaimed the 200-day Exponential Moving Average (EMA) on the 4-hour chart, which he views as a positive development. He highlighted that Bitcoin’s recent price movement, including front-running the quarterly open and sweeping weekend range lows, is characteristic of a strong uptrend. Emperor suggested that while Bitcoin may not see a continuous upward push this week, it remains bullish, with the next target being the monthly open. The analyst concluded, noting: I will be taking some profits on swing positions. Ultimate direction is up but now is the time to take profit on Bitcoin gradually while you bid alts. Is Another Noticeable Correction Going To Happen? While Emperor’s analysis points to a bullish outlook for Bitcoin, other analysts are more cautious. Macro Johanning, another well-known figure in the crypto space, provided an update on Bitcoin’s recent price action, noting that Bitcoin had recently swept the high at $65,100. Johanning suggested that this move to the upside might have temporarily exhausted Bitcoin’s bullish momentum, potentially leading to a dip to around $61,000 before further upward movement. He highlighted the importance of upcoming economic data releases in Bitcoin’s short-term direction. Johanning pointed to several key events scheduled for the week, including the release of US Consumer Confidence data on Tuesday, Nvidia’s earnings report on Wednesday, Q2 2024 GDP data, and July Pending Home Sales on Thursday, followed by July PCE Inflation data on Friday. Related Reading: Bitcoin Price Faces Challenge at $65K: Can It Break Through? These events will likely influence market sentiment and add volatility to Bitcoin’s price action. According to Johanning, Bitcoin’s next significant resistance level is around $67,000, which could become a target once the consolidation phase resolves. Featured image created with DALL-E, Chart from TradingView
Amid Bitcoin’s continuous consolidation below the $61,000 price mark over the past weeks, renowned trading guru Peter Brandt, with decades of experience in the financial markets, has recently shared an update on his outlook for Bitcoin and Ethereum. His analysis comes at a time when both of these assets have been unable to maintain a strong rally in the past weeks but have only continued to see consistent plunges. Related Reading: Bitcoin Sees Surge in Demand: Are We At The Final Phase of Consolidation? Bitcoin And Ethereum Next Move In his latest update, Brandt identifies a “megaphone” or “expanding triangle” pattern on Bitcoin’s weekly and daily charts. This pattern, characterized by increasingly wider price swings, often signals that the market is building up for a major move to the upside or downside. However, despite the meaning of this pattern, Brandt cautions that a “clear trend” has not yet emerged for Bitcoin. Commenting under Brandt’s post, an X user asked the trading guru about the factors that could signal a resumption of Bitcoin’s long-term uptrend, noting: What is more relevant in assessing the long term uptrend has resumed? Breaking above the diagonal resistance line or breaking above the horizontal line at 74k? To this, Brandt provided a straightforward perspective, disapproving the significance of “Diagonal resistance.” The analyst particularly noted: “Diagonal resistance means nothing to me.” In addition to his analysis of Bitcoin, Peter Brandt also shared his thoughts on Ethereum, the second-largest crypto by market capitalization. Brandt’s outlook for Ethereum remains cautious, as he observes that the altcoin is still on the “defensive.” Charts of continuing interest are Bitcoin and Ether. Weekly and daily graphs continue to form a megaphone or broadening triangle pattern in BTC No declaration of next trend yet $BTC$ETH will remain defensive unless/until close above 3050 occurs pic.twitter.com/aEESwhX5oC — Peter Brandt (@PeterLBrandt) August 20, 2024 He identifies the $3,050 level as a critical resistance point for Ethereum. According to Brandt, Ethereum will not exhibit bullish strength until it closes above this key level. Until then, a bearish bias will likely persist, with the potential for further declines if the price fails to break through this resistance. BTC And ETH Market Performance So far, both Bitcoin and Ethereum have been struggling to achieve any notable high following the significant plunge to lower levels earlier this month on August 5. BTC has ranged between $59,000 and slightly above $60,000 in the past week. Although the asset is up 1.3% over this period, it remains in the range with BTC’s current market price at $59,445 at the time of writing. As for Ethereum, the asset’s performance has also slightly mirrored that of BTC. Following ETH’s plunge to $2,197 earlier this month, the asset has continued to range below the $3,000 price mark. At the time of writing, ETH traded for $2,590, up by 0.1% in the past day. Feature image created with DALL-E, Chart from TradingView
Bitcoin could see a breakout to new all-time highs as soon as next month, but BTC must first tackle significant resistance around $59,500.
Bitcoin could see a breakout to new all-time highs as soon as next month, but BTC must first tackle significant resistance around $59,500.
Bitcoin, the largest cryptocurrency by market cap appears to have “bottomed out” and is now poised to surge above $150,000, according to prominent crypto analyst Captain Faibik. This insight from the analyst comes as Bitcoin currently sees a sign of rebound, reclaiming the $60,000 mark following its recent plunge below $59,000. Related Reading: Legendary Fibonacci Extension Reveals When Bitcoin Will Reach $109,000 A $150,000 Surge On The Horizon In his recent post on X, Captain Faibik disclosed a distinct pattern known as the Descending Broadening Wedge found on the BTC chart. This technical pattern typically indicates bullish potential, suggesting that an upward breakout is highly probable after a period of price declines and increasing volatility. Faibik elaborates that we are currently in what he describes as the “Accumulation phase,” which historically precedes significant bullish rallies. This phase is characterized by investors purchasing the asset at lower prices, gearing up for anticipated future gains. The sentiment is supported by the severe price drops in altcoins, with a 60-70% decline since March 2024. Since the March 2024 high, the Markets have been moving in a Descending Broadening Wedge Pattern. We are currently in the Accumulation phase, just before the Next Massive Bullish Rally. Most altcoins are down 60-70% since the March high, and I know Altcoin holders are… pic.twitter.com/ttWsBwMbOJ — Captain Faibik (@CryptoFaibik) August 11, 2024 Captain Faibik is optimistic about Bitcoin’s price trajectory, drawing parallels to previous cycles. He recalls the period around August-September 2023 when BTC traded between $17,000 and $18,000. According to Faibik, those who heeded his advice to buy during that time saw Bitcoin’s value soar to $74,000. Revealing the current outlook, Faibik noted: Now, I’m telling you again to Accumulate. Bitcoin will likely surpass $150k this time. Keep accumulating the dips and Building your Portfolio for the 2024-25 bullrun. Bitcoin Rainbow Chart Outlook Echoing Fabric’s analysis, another analyst, Lark Davis, points to the Bitcoin Rainbow chart, which currently shows Bitcoin in the “accumulation zone.” Based on historical data, investors use this tool to gauge market sentiment and potential price movements. According to Davis, if BTC reaches the “FOMO Intensifies” zone, as it did in the last cycle, it could skyrocket to between $150,000 and $190,000. Related Reading: Bitcoin Price Trims Gains: Is the Rally Losing Steam? Davis advises investors to consider accumulating BTC during these dips, suggesting that we are in an optimal phase for building positions in anticipation of the next market surge. The Bitcoin Rainbow chart shows that $BTC is currently in the accumulation zone. Last cycle, we topped in the “FOMO Intensifies” zone. If we reach that zone this cycle, $BTC could go anywhere between $150K–$190K. Where do you think we top this cycle? pic.twitter.com/STuOwmoN68 — Lark Davis (@TheCryptoLark) August 12, 2024 Featured image created with DALL-E, Chart from TradingView
The newly minted stablecoins could help push Bitcoin’s price above the $65,000 resistance, which is the short-term whale holder's realized price.
Amid Bitcoin (BTC) continuous struggle for a major rally to new heights, miners powering the Bitcoin network are experiencing significant economic shifts. Particularly, recent data shows a stark reduction in Bitcoin reserves held by miners, signaling potential shifts in market stance or miner strategies. Related Reading: $0 Flows: BlackRock Unshaken Despite Recent Bitcoin Market Crash, Data Shows Bitcoin Miner Reserves: A Plunge To 3-Year Low Following the latest Bitcoin Halving—an event that reduced the block rewards miners earn for their computational efforts—which occurred back in April, the total Bitcoin reserves held by miners have plunged to a three-year low. The data shown by Kaiko revealed that as of August 3, BTC miner reserves witnessed a notable plunge to roughly 1,510,300 BTC, marking a 2.4% decrease from the peak earlier in December 2020. This reduction translates to an estimated value of $86 billion, accounting for about 8% of all BTC currently in circulation. In its latest report citing Kiako, Bloomberg attributes this decline in the miner’s reserves to the increased sell-offs from the miners ahead of the recent halving. These sales have been primarily driven by the need to cover operational costs amidst reduced income from block rewards. The report read: The main source of revenue for crypto-mining companies such as CleanSpark Inc. and Riot Platforms Inc. was dramatically reduced by the halving. The preprogrammed update slashed rewards the firms get from validating blockchain data, which is referred to as mining. Although it is worth noting that the network fees on the Bitcoin network saw a spike immediately after the halving, providing temporary relief, this was short-lived as it was quick to adjust back to lower levels, with average fees now at $1.2 as of today, down significantly from more than $120 seen in April post-halving. There’s A Glitch Interestingly, despite the market-wide trend of reduced reserves or holdings from these miners, some public mining companies appear to be bucking this trend, with their Bitcoin reserves increasing significantly. Bloomberg, citing reports from the US Securities and Exchange Commission, noted: [P]ublic mining companies have actually increased their holdings of Bitcoin by 60% to 54,000 tokens since January 2023. […] Marathon Digital Holdings Inc. recently reported that it bought $100 million worth of Bitcoin. This accumulation, considered strategic given the current market condition, may suggest a bullish outlook from certain mining industry sectors despite the broader sell-off. However, the financial health of these mining companies appears to be somehow varied. Related Reading: Analyst Predicts Bitcoin Could Plunge Back To $51,000 On Wedge Pattern Breakdown According to Bloomberg, Core Scientific Inc. had already recently reported a substantial loss of about $804 million for Q2 of this year, which can be due to a “write-down” of the value of its Bitcoin holdings to reflect the current market prices. Featured image created with DALL-E, Chart from TradingView
Bitcoin is currently witnessing a notable pattern on its chart. With the asset undergoing a bullish and bearish trend over the past month, Barchart, a financial market data provider, has revealed that BTC is facing an “Imminent Death Cross Formation.” This formation comes against Bitcoin’s recent significant dip on Monday when the asset lost thousands in value, dropping to as low as $49,781. Related Reading: $0 Flows: BlackRock Unshaken Despite Recent Bitcoin Market Crash, Data Shows Death Cross And The Implication For Bitcoin A death cross is a technical chart pattern indicating the potential for a major sell-off. It appears on a chart when an asset’s short-term moving average exceeds its long-term moving average. Typically, the most common averages used in this pattern are the 50-day and 200-day moving averages. In the context of Bitcoin, a death cross suggests that a significant downturn could be imminent, as it signals that short-term momentum is slowing relative to the long-term trend. However, it’s worth noting that not every death cross results in a lasting bearish period. Bitcoin itself has shown resilience in the face of past death crosse formations. For example, after the March 2020 death cross, Bitcoin rebounded and reached new highs later that year. Similarly, a death cross in June 2021 was followed by a strong recovery, culminating in a new peak months later. These instances highlight that while a death cross can be a bearish indicator, it doesn’t necessarily dictate long-term price movements. Market Performance And Short Term Outlook Meanwhile, Bitcoin, after surging as high as $57,707 earlier today, has now retraced back to a trading price of $56,057., at the time of writing down by 0.8% in the past 24 hours. This retracement has resulted in a more than $200 billion decrease in Bitcoin’s market cap valuation over the past day. Interestingly, despite this dip, the asset’s trading value has surged over the same period, increasing from $26.7 billion in the early hours of Wednesday to above $43.5 billion at the time of writing. Sharing his technical outlook on the asset, prominent crypto analyst Ali has revealed that the Bitcoin chart shows a “classic rising wedge”—a pattern suggesting a correction to $54,500 should BTC break the $56,800 support. Related Reading: Could Bitcoin Outshine Gold? Trading Guru Weighs In On The Historic Financial Duel Ali also highlighted that if the BTC price can close a candle above the $58,000 mark, the overall pattern can be considered “invalidated.” This chart shows a classic rising wedge for #Bitcoin. A correction to $54,500 is likely if #BTC breaks the $56,800 support. However, if $BTC closes above $58,000, this pattern is invalidated! pic.twitter.com/p0Dd1fgoHk — Ali (@ali_charts) August 7, 2024 Featured image created with DALL-E, Chart from TradingView
The last time Bitcoin whales moved this many coins from exchanges was when the BTC price was around $220 in 2015.
As summer is currently fast approaching, several crypto traders and analysts have cranked up their optimism for Bitcoin price trajectory. Among them is well-known crypto analyst, Rekt Capital, who has recently shared insights on BTC next move, suggesting that the asset is poised for a significant breakout in September. This sentiment is echoed by other market analysts who have been closely analyzing recent trends and historical data. What the Bullish September Sentiment Is Based On Rekt Capital pointed out that despite Bitcoin’s failure to break out from its reaccumulation range post-April’s Bitcoin halving, it is still “on track for a September breakout”. Reaccumulation phases are typically characterized by savvy investors accumulating assets in anticipation of a price surge. Related Reading: Is A Major Bitcoin Dip Coming? What the Coinbase Index Tells Us This phase often sets the stage for strong market rallies. However, the complexity of current market conditions means that patience is essential, and the expected movements may unfold more gradually. Rekt Capital noted: History suggests that a breakout from the ReAccumulation Range mere ~100 days after the Halving was always going to be unlikely. Meanwhile, another prominent analyst, Daan Crypto Trades, has recently highlighted the technical patterns forming around Bitcoin’s price. According to Daan, the proximity of lower highs suggests significant liquidity above these levels, likely influenced by stop losses and short liquidations. This setup indicates that surpassing the June 7th high could trigger a comprehensive breakout, overcoming previous resistance levels. Conversely, support levels around $63,000-$63.5,000 are also crucial, as they represent areas where many investors might have placed long stop orders. This creates a balanced playfield, with Bitcoin trading in what Daan describes as “the middle of nowhere,” reflecting a market awaiting a clear directional signal. #Bitcoin With a couple of lower highs in close proximity of each other. Likely for a lot of liquidity to sit above these levels in the form of stop losses/liquidation levels from shorts. Seeing it’s also at all time high, I think once we take the June 7th high we’ll break all.… pic.twitter.com/O4B0CA0dBM — Daan Crypto Trades (@DaanCrypto) July 30, 2024 Bitcoin Market Performance and Fundamentals Currently, Bitcoin is trading at a price of $66,352, at the time of writing, following a 0.7% increase in the past 24 hours. This price performance although small, has resulted in a roughly $6 billion added to the asset’s market cap. While Bitcoin’s current market performance might not be that appealing, a notable metric of the asset has suggested an interesting impending move. Related Reading: Elliot Wave Theory Suggests Bitcoin Price will Crash Below $40,000 Particularly supporting the bullish outlook mentioned above, a CryptoQuant analyst recently observed a notable increase in Bitcoin withdrawals from exchanges. This trend, according to the analyst, can be a positive sign which could result in upward movement for Bitcoin as the available supply on exchanges diminishes, potentially driving prices higher if demand spikes. Featured image created with DALL-E, Chart from TradingView
The beginning of the "macro summer" rally could help Bitcoin price reach a new all-time high and rally well into 2025, according to Raoul Pal.
Altcoins are in accumulation territory after experiencing a drawdown over the last 3 months.
Bitcoin price could reach above the $88,000 mark by September, driven by continued Bitcoin ETF inflows.
Bitcoin miners seem to be capitulating, a harbinger of a bullish reversal, according to Ark.
Bitcoin miners seem to be capitulating, a harbinger of a bullish reversal, according to ARK.
Bitcoin price has rallied above the $64,000 mark. Glassnode, a market intelligence platform, has analyzed this notable increase, which attributes the current price movement to a significant easing of sell-side pressure, particularly from the German government. Exhaustion of Sell-Side Pressure According to the on-chain data provided by Glassnode, the recent uptick in Bitcoin’s price is largely due to what they describe as the “complete exhaustion” of sell-side forces, particularly those stemming from the recent governmental actions. Over the past weeks, the German government has been a big seller, selling off tonnes of Bitcoin, leading to an earlier price decrease at below $54,000. Related Reading: Institutions Grab Over $5 Billion Bitcoin in a Week: Are They Predicting a Mega Rally? Nevertheless, despite these sales, the market has not moved lower than that mark, suggesting that this selling was anticipated and factored into prices by the markets. Glassnode’s report highlights that from July 7 to July 10, approximately 39,800 BTC flowed out of labeled wallets, marking a critical phase of market absorption. Also contributing to the price surge, as highlighted by Glassnode are inflows into Bitcoin exchange-traded funds (ETFs), which have garnered renewed investor attention in recent weeks. Over the last week, ETFs have reported over $1 billion in inflows, suggesting a renewed confidence in Bitcoin among institutional investors. Glassnode noted in the report: As prices sold off towards the $54k low, they dropped below the average inflow cost basis of ETF holders, which is currently at $58.2k. In response, the ETFs have seen their first significant tranche of positive interest since early June, with over $1B in total inflows last week alone. Furthermore, the decline in exchange flows – deposits and withdrawals – remains a significant sign of waning sell-side pressure. Lower exchange flows generally indicate reduced market liquidity and selling, which can provide price support or an upward momentum. Current exchange volumes have cooled off at about $1.5 billion daily, unlike the higher marks seen in March. Related Reading: Bitcoin Bullish Signal: NVT Golden Cross Suggests BTC Oversold Major Rally for Bitcoin On The Horizon? As Bitcoin maintains its position above $64,000, showing an 11.5% increase over the past week, the market appears increasingly bullish. Insights from prominent crypto analyst Rekt Capital indicates that overcoming $65,000 might see Bitcoin enter a new high price cluster zone – one that can push BTC towards as much as $71,500. #BTC The moment Bitcoin breaks $65,000 (blue) is the moment Bitcoin will form a new red cluster of price action Breaking $65,000 would mean price would be ready to move inside the $65,000-$71,500 region$BTC #Crypto #Bitcoin https://t.co/yxOhRsmVU9 pic.twitter.com/TZMP37ufjx — Rekt Capital (@rektcapital) July 16, 2024 Additionally, whale activity continues to demonstrate confidence in Bitcoin’s long-term value. Recent transactions highlighted by Lookonchain, such as a notable whale purchasing 245 BTC for nearly $16 million, underscore the strategic accumulation amidst this rally. Featured image created with DALL-E, Chart from TradingView
XRP has significantly lagged behind Bitcoin in 2024, but a recent Mt. Gox- and German government-led sell-off in the BTC market may spark renewed interest in the altcoin.
Bitcoin’s price could be on track to begin the reaccumulation phase as the German government is down to its last few thousand BTC.
On Saturday, Bitcoin experienced a robust rally, climbing above $58,250. Despite this upward movement, it was unable to sustain the momentum and close above the 200-day Exponential Moving Average (EMA). This led to the formation of a bearish engulfing candlestick pattern on Sunday, signaling potential downside momentum. Currently, Bitcoin is trading below $56,000, positioning it at a critical juncture in terms of technical analysis and market sentiment. Sina G, the COO and co-founder of 21st Capital, provided a breakdown of the factors influencing Bitcoin’s price trajectory today, particularly highlighting recent declines and evaluating its undervalued state through sophisticated metrics. Starting with a historical overview, Sina pointed out that Bitcoin had seen a drastic 26% decline from a March peak of $73,000, settling around $56,000 in recent weeks. Related Reading: Bitcoin Critic Calls ‘Institutional Demand’ A Myth Following Recent Price Slump This sharp decrease has been attributed to several macroeconomic and sector-specific factors. According to him, Bitcoin’s fall from the $73,000 peak in March to $56,000 aligns with historical bull market corrections, which often see significant yet temporary retracements. The influence of Bitcoin ETFs has been pivotal. Initially, these ETFs contributed significantly to the price surge from $16,000 to $73,000, as investors engaged heavily in a buy-the-rumor, buy-the-news strategy. “Up to mid-march ETF flows were very strong and the market moved up. Since then ETFs slowed down and bankruptcy outflows took over, causing a weak price action all the way down to $56K. A notable recent impact on Bitcoin’s price has been the selling activity of the German government, which disposed of Bitcoin seized in 2013 from the pirated content platform Movie2k.to. “The government’s decision to liquidate approximately 10,000 coins across three transactions coincided directly with significant price drops on specific dates in June and July,” he noted. This selloff contributed to a steep 24% crash in June and July, exacerbated by the large volume of Bitcoin introduced into the market. Related Reading: Bitcoin Price Crashes Below $54,000: Top-5 Reasons Is Bitcoin Undervalued? To address whether Bitcoin is currently undervalued, Sina turned to the Volatility-Adjusted Price Level Index (VPLI), a proprietary metric developed by 21st Capital. “Currently, our VPLI is at -3.57, which indicates that Bitcoin is significantly below its fair price,” Sina stated. He further clarified that historically, a VPLI score of -10 corresponds with bear market bottoms, placing the current reading in a context that suggests Bitcoin is potentially undervalued. “This puts us in the 41th percentile of values – i.e., Bitcoin has only spent 41% of below this VPLI reading (most of which during the bear markets). So the risk-reward balance is favorable,” he added. Looking forward, Sina highlighted two critical short-term indicators that could dictate Bitcoin’s immediate price movements: the continuation of Bitcoin sales by the German government and the behavior of the perpetual swaps funding rate. “Recently, the funding rate has been negative, which is typically a bearish signal. This suggests that many traders are taking short positions, anticipating further declines, which paradoxically might indicate that the market is close to reaching a bottom,” he concluded. At press time, BTC traded at $55,835. Featured image created with DALL·E, chart from TradingView.com
Bitcoin has recently exhibited resilience that has surprised many market spectators. Following a dismal drop to a 24-hour low of $53,898, Bitcoin clawed its way back above the $56,000 mark, up 1.6% in the past hour. This rebound has been catalyzed by the latest US NFP report revealing a surge in the unemployment rate, which has sparked a surge in buying activity, momentarily easing the bearish pressure. However, this recovery may not signal a sustained upward trend, as experts hint at potential further declines. Related Reading: Bitcoin Price Crashes Below $54,000: Top-5 Reasons Analyst Bitcoin Predictions: A Potential Drop To $47k A prominent crypto analyst, Ali, has expressed concerns about Bitcoin’s current market positioning. Despite the recent price recovery, he suggests that Bitcoin could significantly drop to around $47,000. This prediction stems from his analysis of Bitcoin’s support levels, which he believes are insufficient to sustain a long-term bullish momentum. According to Ali, for Bitcoin to resume its bull run, it would need to “close and hold above $61,000″—a scenario that seems increasingly speculative given the current market condition. #Bitcoin currently lacks significant support. The main key demand wall is around $47,000, and for the bull run to resume, $BTC must close and hold above $61,000. pic.twitter.com/9cD2otd4ZK — Ali (@ali_charts) July 5, 2024 Amid these turbulent market conditions, other financial experts remain cautiously optimistic. Samson Mow, a notable figure in the cryptocurrency space, argues that the current price levels of Bitcoin are the result of artificial market manipulation. He particularly labels the drastic price movements as “artificial price suppression,” influenced by significant Bitcoin transfers by government entities during periods of low market liquidity. Mow’s assertion suggests that external market forces are at play, potentially skewing the natural price discovery process of Bitcoin. Surge In Volatility Ahead Meanwhile, Greek Live highlighted emerging volatility in the cryptocurrency market earlier today, focusing on the imminent expiration of many Bitcoin and Ethereum options. The report detailed that 18,000 BTC options and 164,000 Ethereum options are set to expire soon, representing notional values of $1 billion and $470 million, respectively. This situation is particularly notable due to the skewed Put Call Ratios and defined Maxpain points, suggesting potential price pivots at $61,500 for Bitcoin and $3,350 for Ethereum. The onset of July brought significant market downturns, hitting new monthly lows across major cryptocurrencies. The end of the quarterly cycle triggered enhanced market volatility, providing a strategic window for institutional players to establish positions. Related Reading: Bitcoin Nears Bottom? QCP Analysts Spot Signs of Capitulation as Prices Tumble Below $59K Furthermore, amidst a bearish market sentiment, there’s a noticeable increase in the implied volatility of put options for Bitcoin and Ethereum, indicating growing caution among traders. July 5 Options Data 18,000 BTC options are about to expire with a Put Call Ratio of 0.65, a Maxpain point of $61,500 and a notional value of $1 billion. 164,000 ETH options are due to expire with a Put Call Ratio of 0.36, a Maxpain point of $3,350 and a notional value of $470… pic.twitter.com/uAxOO5gDQ8 — Greeks.live (@GreeksLive) July 5, 2024 Greeks Live further reported that with the upcoming news on Ethereum ETFs and the attractive pricing of end-of-month call options, there’s a strategic opening for investors looking to capitalize on these market conditions. Featured image created with DALL-E, Chart from TradingView
Some crypto analysts expect Bitcoin’s price consolidation to end based on technical chart patterns and falling exchange reserves.