Bitcoin Price Analysis: The cryptocurrency market extended its correction trend for the first of July as Bitcoin witnessed a massive outflow. Amid the liquidation of the fallen Mt. Gox exchange, the US and German governments, the BTC price fell to a 4-month low of $53,500 on Friday. While the weekends are mostly stable for digital assets, the aforementioned entities could offload more BTC this month, creating a concern of further downfall.

Also Read: Bitcoin Selling Pressure Also Fueled By 9,301 BTC From 2 Whales

Bitcoin Price Analysis: Large BTC Holders Accumulate Amidst Volatility

Bitcoin Price Analysis| Tradingview

Analyzing the daily charts shows that Bitcoin showcased an aggressive downfall since June start and its price reverted to $72000, The bearish turnaround initiative led by BTC miners’ capitulation and ETFs outflow is now carried by heavy liquidation from Mt. Gox exchange, the German Government, and the US Government. 

Thus, Bitcoin recorded a monthly loss of 25.5% to hit $53500, while the market cap plunged to a low of $1.06 Trillion on Friday. However, the supply pressure eased as the weekend approached and reverted the coin price to $56739.

Interestingly, the reversal formed precisely at the support trend of a bull flag. This continuation pattern has been driving the past 4-months’ consolidation in BTC between the two downsloping trendlines. 

Until the lower trendline is intact, the pioneer cryptocurrency is prevented from a major correction, thus maintaining its market cap above $1 Trillion.

Also Read: Just-In: German Govt Moves 500 Bitcoin, Another BTC Dump Imminent?

Moreover, recent analytics from Santiment shows that wallets holding over 10,000 Bitcoin have significantly benefited from the recent six-week volatility in the cryptocurrency market. These large holders, believed to be primarily exchange liquidity providers, have accumulated an additional 212,450 BTC during this period, now owning 1.05% of the total Bitcoin supply.

Wallets with 10K+ Bitcoin have been the extreme beneficiaries of the past 6 weeks of volatility. With these massive addresses speculated to be heavily comprised of exchange liquidity providers, they own 212,450 BTC more over this stretch, and 1.05% more of the entire supply. pic.twitter.com/8Ob2OIJ2M2

— Santiment (@santimentfeed) July 5, 2024

This surge in accumulation marks the highest level of holdings in nearly six years. The last time wallets with 10K+ BTC exceeded 3.19 million coins was in November 2018. The current trend indicates strong confidence among these large holders, which could be a bullish signal for the cryptocurrency’s future performance.

Furthermore, the ongoing consolidation is above the 23.6% Fibonacci retracement level indicating the broader trend remains bullish.

Thus if the flag pattern holds true, the Bitcoin price could rebound 23% to rechallenge the flag resistance around $70000. A successful breakout from the overhead is crucial to reentering a bullish trend.

The aforementioned upswing will be invalidated if sellers breach the bottom support trendline.

Technical Indicator 

BB Indicator: The BTC price challenging the lower boundary of the BB indicator highlights the sellers are still aggressive towards this asset.
RSI: The Relative strength index below the oversold region (below 30%) after August 23’ could attract fresh buying pressure.

The post Bitcoin Price Analysis: How Bull Flag Defends $1 Trillion Market Cap for BTC appeared first on CoinGape.

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Filed under: News - @ July 6, 2024 12:15 pm