2023-07-21 16:08:00
After a brief bullish rally, Bitcoin failed to hold above $30,000. But what does the next few days hold for him?
The victory of Ripple (???? XRP) once morest the SEC and the wave of applications for Bitcoin ETFs gave a breath of fresh air to the king of cryptocurrencies. But following recovering, the asset plunged back into the red this week.
That said, the Fed is expected to announce its interest rate decision on July 26, which should have a major impact on Bitcoin price.
Bitcoin Whale Activity Soars
Ever since Blackrock, Valkyrie, and Invesco filed applications for ₿ Bitcoin ETFs, whale activity has skyrocketed. According to data from Santiment, the daily number of BTC transactions exceeding $1 million is still on the rise.
After hitting a low of 943 transactions on May 22, transaction volume exceeding $1 million nearly tripled in June and July.
Thus, more than 2,983 BTC transactions over $1 million were made on June 29. That figure fell to 2,571 on July 18, but it remains up more than 172% from the May 22 low.
Transaction volume exceeding $1 million: Saintly
For your information, whale transactions are transactions whose amount exceeds $1 million. By monitoring this indicator, analysts can get an idea of the general sentiment of institutional investors and the wealthiest bitcoin whales.
A significant increase in whale trades over an extended period is usually interpreted as a bullish signal. This for several reasons:
First, institutional investors tend to hold their assets for long periods of time. Second, whale liquidity allows small wallets to execute high volume trades without negatively impacting the price. Thus, the surge in whale activity portends a rise in Bitcoin price.
The BTC balance of the exchanges plummets
The BTC balance of the ???? crypto exchanges also allows us to have an idea regarding the next movements of the asset. According to the blockchain analysis platform CryptoQuantthe BTC balance of major crypto exchanges has dropped significantly this week.
Indeed, the BTC balance of the exchanges went from 2.09 million on July 13 to 10,000 BTC this Friday, July 21. A meteoric drop that says a lot regarding the ???? investor sentiment.
BTC balance of the main crypto exchanges: Cryptoquant
When the BTC balance of crypto exchanges drops so significantly, it can be inferred that investors intend to hold the asset for the long term.
In other words, declining BTC balance on exchanges and surging demand are good omen signals for Bitcoin.
If this trend continues, the Bitcoin price might soon exceed the $30,000 mark
Bitcoin prediction: towards a course of $32,000?
Given the above data, Bitcoin is likely to cross the $32,000 mark soon. But to reach this level, ???? Satoshi Nakamoto’s crypto must first break its resistance of $30,740.
As seen in the chart below, over 3.18 million investors bought 1.43 million BTC at a price of $30,740. If they decide to liquidate their holdings once the break-even point is reached, Bitcoin is likely to continue falling.
Nonetheless, if the bullish momentum builds, this group of investors might create a wider accumulation zone and propel Bitcoin towards its target of $32,000.
IOMAP indicator: IntoTheBlock
That said, if the market anticipates a negative move from the US Fed, the world’s largest cryptocurrency is likely to fall as low as $27,000. However, the 803,000 investors who bought 547,000 BTC at the average price of $28,400 might maintain the bullish momentum.
Moral of the story: Bitcoin’s future is in the hands of the Fed, but not for long.
Disclaimer
Disclaimer: In accordance with The Trust Project guidelines, this price analysis article is intended for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased information, but market conditions may change without notice. Always do your own research and consult a professional before making any financial decisions.
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#fate #Bitcoin #hands #Fed #heres
