Tag: MARKET STRUCTURE

Bitcoin’s Percent Balance on Exchanges Hits a 3-Year Low Amid Open Interest Breaking the Record at $19B

by Blockchain News

Bitcoin (BTC) has been on a roller coaster ride because it recently set a new all-time high (ATH) price of $66,952 after breaching the previous record of $64,800 achieved in mid-April. 

Meanwhile, the Percent Balance of Bitcoin on exchanges has been down-trending after hitting a three-year low of 13%.

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This is bullish because it signifies a holding culture, given that Bitcoin is transferred from crypto exchanges and kept in cold storage and digital wallets. 

BTC’s surge has been fueled by the Securities and Exchange Commission (SEC) approving the Bitcoin Exchange Traded Fund (ETF).

ProShares, an American ETF provider, announced on October 18 that its Bitcoin Futures backed ETF would be traded on the New York Stock Exchange (NYSE). 

Days later, the SEC approved VanEck’s quest to launch a similar product. VanEck is a global asset management firm.

Bitcoin ETF is a type of security that tracks the overall price of Bitcoin. It enables investors to trade and purchase shares of it on traditional exchanges, circumventing crypto trading platforms.

By holding an ETF, investors can access many stocks in the same category, such as the banking industry, the tech industry, or the oil industry. ETFs offer diversity to investors’ portfolios and provide a mixture of investments such as stocks, commodities, and bonds. 

Bitcoin’s open interest in perpetual swaps hits ATH

According to data analytic firm IntoTheBlock:

“Bitcoin’s Open Interest in Perpetual Swaps reached $19 billion for the first time.”

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Therefore, open interest increases with price, and this shows their strong correlation.

Meanwhile, long-term BTC holders are almost entering their preferred profit-taking area. On-chain analyst under the pseudonym TXMC explained:

“After one day in price discovery, Long-Term Holders are quickly nearing their preferred profit-taking zone. We anticipated this- a natural step in all bull runs. The coming weeks will tell the story of this market’s chances to reach its full potential. Confidence is high.”

Long-term holders have emerged to be significant players in the Bitcoin ecosystem. 

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Bitcoin Surges Above the 200 Day MA with the Confirmation of a Golden Cross

by Blockchain News

Bitcoin (BTC) was up by 3.82% in the last 24 hours to hit $47,011 during intraday trading, according to CoinMarketCap. The surge of price pushed the leading cryptocurrency above the 200-day moving average (MA).

Market analyst Lark Davis explained:

“Bitcoin daily close back above the 200 day MA and the golden cross confirmed.”

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The 200-day MA is a key technical indicator used to determine the general market trend. It is a line that shows the average closing price for the last 200 days or roughly 40 weeks of trading. A surge above this indicator shows the start of an uptrend.

On the other hand, the golden cross happens when a short-term moving average crosses over a major long-term moving average to the upside and is usually interpreted by analysts as an upward turn in a market.

On-chain analyst Will Clemente believes with the 200-days MA crossed, Bitcoin needs to break resistance between $47,000 to $47,150 before experiencing a surge towards $50.5K.

Is Bitcoin facing a breakout?

According to market analyst Ali Martinez:

“Four reasons why Bitcoin could breakout: 1) 3.2K long BTC positions were created at Bitfinex. 2) Addresses with 10K to 100K BTC purchased 60K BTC. 3) 80K BTC withdrawn from known crypto exchanges wallets. 4) Large transactions volume on the BTC network surpassed $451 billion.”

Meanwhile, 93% of Bitcoin’s supply hasn’t moved for a month, and this is a metric that shows bullish supply dynamics. Davis echoed these sentiments and said:

“We just hit a new all-time low for young Bitcoin (under 3 months) HODL wave. This often signals the end of a bearish period and is often a time when big money accumulates.”

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Nevertheless, Veteran trader Peter Brandt recently cautioned against the “fear of missing out” (FOMO) trading in the present Bitcoin market, warning that the market was not yet in a bull run based on the congestion taking place. 

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16.4% of Total Bitcoin Supply Back to Profitability as Daily BTC Addresses Edge Closer to the 1M Mark

by Blockchain News

Bitcoin (BTC) seems not to be relenting in its quest to scale the heights, given that its upward momentum is still life days after breaching the psychological price of $40K. The top cryptocurrency was up by 2.15% in the last 24 hours to hit $46,159 during intraday trading, according to CoinMarketCap.

As 16.4% of the total BTC supply is back to profits, Crypto analytic firm Glassnode explained:

“Between the low of $29.7K, and the current price at $45.4K, a total of 16.4% of total Bitcoin supply returned to profit. This indicates that approximately 3.08M BTC were last spent, and thus have an on-chain costs basis in this price range.”

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Furthermore, the latest surge has given short-term Bitcoin holders a reason to smile because their investments are back to positive values. 

In May, BTC became the talk of the town after it nosedived from an all-time high (ATH) of $64.8K recorded in mid-April to lows of $30K. Nevertheless, the leading cryptocurrency is regaining lost grounds.

Bitcoin daily addresses eye the 1 million level

According to on-chain metrics provider Santiment:

“Address activity continues to be a very important metric to watch for hints on whether Bitcoin will cross $50K or fall below $40K. Currently 720K to 930K addresses use the BTC network daily, and we’re looking for a spike above 1m as a bull run signal.”

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Therefore, a notable number of participants has been using the Bitcoin network., as acknowledged by on-chain analyst Lex Moskovski.

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Significant on-chain resistance stands between $45.6K and $46.9K

IntoTheBlock believes that Bitcoin should shutter on-chain resistance between the $45.6K and $46.9K before getting the green light and heading towards the $50K level. The data analytic firm explained:

“As demonstrated by the high amount of trading activity, the biggest level of on-chain resistance for BTC in order to reach $50k is located between $45.6k and $46.9k, where 763k addresses bought 428k BTC.”

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With an uptick in daily Bitcoin activity being recorded, whether this will trigger a surge to the psychological price of $50,000 remains to be seen. 

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Bitcoin Eyes for a Clear Direction amid the Mist

by Blockchain News

Bitcoin (BTC) tanked by at least $2,000 in the last 24 hours to hit $32,685 during intraday trading, according to CoinMarketCap.

The top cryptocurrency has been indecisive because it has consolidated between the $30K and $40K area for more than two months now. Therefore, BTC traders are waiting for the next significant movement in either direction, as acknowledged by Santiment.

The on-chain metrics provider explained:

“Bitcoin’s movement has continued to become more dormant while traders wait for the next major move in either direction.”

Market analyst Michael van de Poppe echoed these sentiments. He said:

“Bitcoin is still acting inside the range, and no decision has been made. Losing $33K range, and I’m looking at $31-31.4K.”

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Part of the indecisiveness in the BTC market has been caused by the actions of long-term and short-term holders, as previously revealed by on-chain analyst William Clemente III. 

Notably, as long-term BTC holders keep accumulating, their short-term counterparts keep selling. 

For instance, Bitcoin addresses holding between 100 and 10,000 BTC now own 9.13 million coins, and this has been the highest mark since April 14. 

Is the crypto market entering a new regime?

John Bollinger, a veteran trader and the inventor of the popular Bollinger Band indicator, stated that trading patterns in the crypto space have become quite unusual. He, therefore, wondered if the crypto market was entering a new regime. 

To delve deeper into this puzzle is the fact that the Bitcoin market has been ranging for quite some time despite witnessing the highest level of on-chain volume since its $10.3K, as disclosed by William Clemente III.

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It, therefore, remains to be seen whether Bitcoin will continue holding above the $30K range.

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Bitcoin Needs to Sustain the Level Around $32.2-33K as Support to Strengthen an Upward Momentum, says Market Analyst

by Blockchain News

Bitcoin (BTC) was down by 1.48% over the last 24 hours after hitting the $36K level, with a price of $34,615 during intraday trading, according to CoinMarketCap.

BTC has been consolidating between the $30K and $40K range for more than two months, although it nosedived from an all-time high of $64.8K recorded in mid-April. Furthermore, the leading cryptocurrency recently dropped to lows of $28K as China’s crypto mining crackdown intensified. 

Market analyst Michael van de Poppe believes that the renewed upward momentum in the BTC market will be sustained if the area between $32.2 and $33K is strong enough to support. He explained:

“I find the level around $32.2-33K extremely important to sustain as support. That would generate a higher low & strength towards further upwards momentum.”

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Higher-highs and higher-lows are usually generated in an uptrend, whereas lower-highs and lower-lows are noted in a downtrend.

Michael van de Poppe had previously stated that if this area holds, the next level to be hit will be $38K. 

His sentiments were recently echoed by another trader, who noted:

“If Bitcoin doesn’t fall below 32K within the next 48 hours, We are probably to rise sharply to 39K and 42K Zone.”

Strong hands have reduced selling pressure from weak hands

According to on-chain analyst William Clemente III:

“Imo this chart is the easiest way to visualize what’s taken place over the last month under the hood. Strong hands have added increasingly through the recent price decline, now offsetting selling from weak hands. Now we wait for reaccumulation to complete – seller exhaustion.”

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Strong hands are investors who hold Bitcoin for the long term, whereas weak hands hold it for the short term. 

Clemente III had previously pointed out that the deadlock stuck on the BTC network was being caused by long and short-term holders. He acknowledged that long-term holders had bought an additional 579,940 BTC in the past month, whereas their short-term counterparts had sold 521,983 BTC in the same period.

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Ethereum Might Experience a Period of Consolidation, says Market Analyst

by Blockchain News

Ethereum (ETH) was hovering around the $2,584 price during intraday trading after regaining momentum in the last 24-hours.

The second-leading cryptocurrency by market capitalisation was on the receiving end from the recent crypto market crash, given that its price nosedived to lows of $2,000 from an all-time high (ATH) of $4,350.

Crypto analyst Michaël van de Poppe acknowledged that ETH held a crucial support level, which may enter into a period of consolidation. He explained:

“Ethereum is still holding a critical level of support here, through which a period of consolidation is likely going to happen. This happened in 2016 & 2017 as well, after which a new impulse wave happened.”

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On-chain metrics provider Glassnode also noted that the last active Ethereum supply over the previous three to six months reached a 2-year high of 18.55 million ETH, suggesting that a considerable amount of Ethereum was being transferred from cold storage to exchanges.

Ethereum’s transaction volume dries up

According to Glassnode:

“Ethereum’s transaction volume (7d MA) just reached a 1-month low of $230,006,909.69.”

Moreover, the number of ETH transfers recently hit a monthly low of 24,471.607.

Nevertheless, the total fees paid on the Ethereum network reached an 11-month low of 105.547 ETH. Its cost has become a significant challenge that ETH had faced, given that at one time, it hit a record high which was out of reach for the average trader. 

The decentralised finance (DeFi) sector aided Ethereum’s recent bull run. As a result, this area experienced an exponential expansion over the past few months as the number of users increased by 1,300% to hit 2.1 million. The total value locked (TVL) in smart contracts shot up by 9,000% and stood at $113 billion.

It, however, remains to be observed whether Ethereum will regain momentum to continue scaling new heights before the year closes. 

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Bitcoin Edges Close to Hit the 200-Day Moving Average

by Blockchain News

After hitting lows of $30k, Bitcoin (BTC) was once up 5.45% on Wednesday, trading at $40,278, according to CoinMarketCap.

BTC suffered a sharp correction on May 19 as the price fell to around $30,000, resulting in the biggest single-day drop of price, up to 30%. Furthermore, this price drop became the first time BTC had dropped below the 200-day moving average (MA). 

The 200-day MA is a key technical indicator used to determine the general market trend. It is a line that shows the average closing price for the last 200 days or roughly 40 weeks of trading.

Market analyst Lark Davis disclosed that the regained momentum has pushed Bitcoin closer to the 200-day MA.

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A move above this indicator signifies an uptrend. 

An analysis from CryptoHamster revealed that BTC ought to trade above $34,000 for an upward move to be triggered. 

Africa leads in peer-to-peer Bitcoin trading.

According to crypto data provider Documenting Bitcoin:

“Africa is leading the world in peer-to-peer Bitcoin trading volume growth, with 22% in the last three months.”

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In July last year, it was reported that African nations like Kenya, South Africa, Nigeria, and Ghana had traded Bitcoin worth more than $1 million in a single week.

It, therefore, shows that Africa is still a hub of BTC trading undertaken in peer-to-peer platforms. 

Bitcoin open interest starts to gain momentum.

Crypto research analyst Nick Mancini disclosed that Bitcoin open interest had bottomed, but it seems it is starting to lift higher as the big gamblers are flipping bullish. 

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Market trader Joseph Young also pointed out:

“There are a lot of Bitcoin wallets at a loss now compared to a few weeks back. Historically, when this capitulation-esqe trend happened, a sustainable gradual uptrend followed. Let’s observe several FUD points/variables at play, but looking better than not.”

As a result, that needs to observe if Bitcoin will surge past the 200-day MA later. 

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Bitcoin Edges Close to Hit the 200-Day Moving Average

by Blockchain News

After hitting lows of $30k, Bitcoin (BTC) was once up 5.45% on Wednesday, trading at $40,278, according to CoinMarketCap.

BTC suffered a sharp correction on May 19 as the price fell to around $30,000, resulting in the biggest single-day drop of price, up to 30%. Furthermore, this price drop became the first time BTC had dropped below the 200-day moving average (MA). 

The 200-day MA is a key technical indicator used to determine the general market trend. It is a line that shows the average closing price for the last 200 days or roughly 40 weeks of trading.

Market analyst Lark Davis disclosed that the regained momentum has pushed Bitcoin closer to the 200-day MA.

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A move above this indicator signifies an uptrend. 

An analysis from CryptoHamster revealed that BTC ought to trade above $34,000 for an upward move to be triggered. 

Africa leads in peer-to-peer Bitcoin trading.

According to crypto data provider Documenting Bitcoin:

“Africa is leading the world in peer-to-peer Bitcoin trading volume growth, with 22% in the last three months.”

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In July last year, it was reported that African nations like Kenya, South Africa, Nigeria, and Ghana had traded Bitcoin worth more than $1 million in a single week.

It, therefore, shows that Africa is still a hub of BTC trading undertaken in peer-to-peer platforms. 

Bitcoin open interest starts to gain momentum.

Crypto research analyst Nick Mancini disclosed that Bitcoin open interest had bottomed, but it seems it is starting to lift higher as the big gamblers are flipping bullish. 

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Market trader Joseph Young also pointed out:

“There are a lot of Bitcoin wallets at a loss now compared to a few weeks back. Historically, when this capitulation-esqe trend happened, a sustainable gradual uptrend followed. Let’s observe several FUD points/variables at play, but looking better than not.”

As a result, that needs to observe if Bitcoin will surge past the 200-day MA later. 

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Bitcoin Edges Closer to Hitting the 200-Day Moving Average

by Blockchain News

After hitting lows of $30k, Bitcoin (BTC) was once up 5.45% on Wednesday, trading at $40,278, according to CoinMarketCap.

BTC suffered a sharp correction on May 19 as the price fell to around $30,000, resulting in the biggest single-day drop of price, up to 30%. Furthermore, this price drop became the first time BTC had dropped below the 200-day moving average (MA). 

The 200-day MA is a key technical indicator used to determine the general market trend. It is a line that shows the average closing price for the last 200 days or roughly 40 weeks of trading.

Market analyst Lark Davis disclosed that the regained momentum has pushed Bitcoin closer to the 200-day MA.

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A move above this indicator signifies an uptrend. 

An analysis from CryptoHamster revealed that BTC ought to trade above $34,000 for an upward move to be triggered. 

Africa leads in peer-to-peer Bitcoin trading.

According to crypto data provider Documenting Bitcoin:

“Africa is leading the world in peer-to-peer Bitcoin trading volume growth, with 22% in the last three months.”

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In July last year, it was reported that African nations like Kenya, South Africa, Nigeria, and Ghana had traded Bitcoin worth more than $1 million in a single week.

It, therefore, shows that Africa is still a hub of BTC trading undertaken in peer-to-peer platforms. 

Bitcoin open interest starts to gain momentum.

Crypto research analyst Nick Mancini disclosed that Bitcoin open interest had bottomed, but it seems it is starting to lift higher as the big gamblers are flipping bullish. 

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Market trader Joseph Young also pointed out:

“There are a lot of Bitcoin wallets at a loss now compared to a few weeks back. Historically, when this capitulation-esqe trend happened, a sustainable gradual uptrend followed. Let’s observe several FUD points/variables at play, but looking better than not.”

As a result, that needs to observe if Bitcoin will surge past the 200-day MA later. 

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Bitcoin Has Spent 3 Months Bouncing Between $45,000 and $60,000

by Blockchain News

Bitcoin’s upward momentum has dried up because it has spent three months bouncing between $45k and $60k, as alluded to by market analyst Lark Davis.

BTC hit a new all-time high (ATH) above $64,500 in mid-April, but a correction to the $46-48k area has been imminent.

This has been triggered by speculations that the American administration will increase capital gain taxes, new market entrants triggering panic selling, and revelations about Tesla stopping Bitcoin transactions based on environmental factors. 

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BTC is hovering around the $49.2k price at the time of writing, according to CoinMarketCap. Davis believes that Bitcoin finds itself in a ranging market, which signifies an accumulation zone. 

On the other hand, Santiment has acknowledged that BTC supply on crypto exchanges is back to high levels. The on-chain metrics provider explained:

“The supply of Bitcoin sitting on exchanges is currently back to its highest level since January 14th. The 4-month high is indicative of fear.”

Nevertheless, financial analyst William Clemente trusts that big money is buying the fear. 

Bitcoin ETF is the next rocket fuel

According to Real Vision Group CEO Raoul Pal, Bitcoin ETF is the next rocket fuel in the market. He noted:

“The ETF is the next rocket fuel for this market. The Wall of Money keeps coming, but it takes time for everyone to get internal approvals. I have so many conversations helping hedge funds.”

Bitcoin Exchange Traded Fund (ETF) is a type of security that tracks the overall price of Bitcoin and enables investors to trade and purchase shares of it on traditional exchanges, circumventing crypto trading platforms.

In March, Jesse Powell, the co-founder and CEO of leading American crypto exchange Kraken, suggested that the crypto market was entering the early stages of mainstream adoption due to the rise in popularity of Bitcoin ETF.

For instance, at least 6 US Bitcoin ETF applications from Wisdom Tree, VanEck, NYDIG Asset Management, Valkyrie Digital Assets, Skybridge and First Trust, and Fidelity Investments are currently awaiting approval. 

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Bitcoin (BTC) $ 43,888.76 0.18%
Ethereum (ETH) $ 2,349.69 0.73%
Litecoin (LTC) $ 77.24 1.50%
Bitcoin Cash (BCH) $ 255.43 2.48%