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Bitcoin Bull Run In Jeopardy? Analyst Finds Market Top Signals With BTC At $40,000

Bitcoin is walking back on some of its gains over the past few days. The number one cryptocurrency by market cap might be on the verge of a more significant retracement, which could push it back to the $30,000 zone.

As of this writing, Bitcoin (BTC) trades at $40,950 with a 2% loss in the past 24 hours. On the weekly chart, the cryptocurrency records a 3% loss, with all tokens in the top 10 by market recording a similar performance, except for Avalanche (AVAX).

Bitcoin BTC BTCUSDT Chart 1

Bitcoin Hits Local Top? Bull Run Slows Down

Over the weekend, Bitcoin was rejected from the critical resistance level at $43,500. According to a pseudonym analyst, as the BTC price dropped to its current levels, a significant player placed a “substantial resistance block.”

The chart below shows that the selling order is 1,562 BTC, or around $7 million. It also shows thick support for BTC as the bullish momentum fades.

Bitcoin BTC BTCUSDT Chart 2

In other words, Bitcoin might slow down, but the area around $40,000 could provide critical support for a potential bounce. The analyst stated on the increasing selling orders appearing on the books:

Massive resistance added on BTC Binance Spot. This is what a top looks like. A substantial resistance block of 1562 BTC has just arrived in the order books.

BTC Whales On The Move

While many believe that the market can absorb the spike in selling pressure, crypto analytics firm Material Indicators showed that Bitcoin is losing the support of major players. Over the weekend, players selling orders above $1 million “dumped” their positions.

The firm has been warning traders about this possibility by arguing that the recent bullish price action was a strategy to suck in liquidity from retail investors. Once this smaller player jumped in, whales began to “distribute” or sell their coins into the rally.

In that sense, the firm set a potential local top for BTC at $45,000. Keith Alan, one of Material Indicators senior analysts, stated the following on the current price action:

The good news is, at some point the market does flip to accumulation, and prices moving lower will get us to that point. As bad as it looks for bulls right now, I’m not expecting a straight line down. Time to exercise some patience and see how things develop from here.

Cover image from Unsplash, chart from Tradingview

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Decentral House: New Swiss Web3 Hub Unites Cardano, UN, And WTO In Inauguration

In Geneve, Switzerland, Decentral House, a new initiative to unite the blockchain and Web3 space, has emerged. On the night of December 14th, several industry leaders from organizations worldwide discussed how blockchain is transforming the world.

Decentral House: Merging The Physical With The Digital In One Spot

Decentral House aims to serve as a hub for existing blockchain projects. This will enable them to collaborate, bring their ideas to life, and participate in initiatives supported by major players in the Swiss financial industry.

The new hub was created to provide these projects with a place to materialize the discussions and ideas of Conferences and Summits that take place throughout the year. According to Decentral House founder and managing partner at STORM, Sheraz Ahmed, the physical place will integrate with the digital world to drive blockchain adoption.

In the silence of this Decentral House, Ahmed believes that builders can speak about their projects and create a deeper connection. During the event, Ahmed told us:

Decentral House is a centralized meeting point for the decentralized community. There’s a little bit of irony there. We definitely believe that there’s need to break down the silos that are created within our industry. I mean, a lot of people talk online, they build online, but we never really get the chance to meet in person. Even beyond just having a cocktail, a drink, and the likes, but being able to sit down and speak when there is silence. When you go past the small talk, past the, “Hey, how are you? It’s nice weather outside, which event are you going to next? Ah, that’s great. Okay, see you soon.” And when there’s silence, you can really think and have those deeper conversations (…).

Ahmed highlighted the importance of Switzerland for the nascent sector, claiming that while many projects are based on a blockchain, the industry itself is “based on Switzerland.” This is due to the country’s banking system which allows the industry to gain access to capital and a solid legal framework.

In other words, Switzerland is considered a “Safe Haven” for the blockchain community. Decentral House will provide a platform for like-minded individuals and events within this sanctuary.

decentral house crypto bitcoin ethereum eth ethusdt web3 blockchain

More Than A Co-Working Space, A Sanctuary

Created as a long-term project running for at least two years, Decentral House will operate as much more than a co-working area. Web3 builders can join the initiative via different tiers and receive access to industry events, specialists in fundraising and compliance, and other services critical for their success in the nascent sector.

The initiative is finalizing deals with major companies and organizations within the Web3 space and legacy sectors. Ahmed firmly believes that Decentral House can be a place that will help all actors work towards adoption and innovation:

(…) if we can bring everyone around the same table, they can then truly create the innovation that we’re seeking. And so in order to do that, we’re creating a two year program that goes through four phases of ideation, iteration, validation, and execution. So we ideate, we brainstorm, create those ideas, we will then iterate on them, maybe there are some better than others. How can we move them? Then we will validate them, validate them with the board, get the funding.

The latter has been a critical question for many industry projects; many have the team and ideas but struggle during their fundraising phase. Others speed up this process and launch ideas that still require refinement. On the latter, Ahmed said:

The fact that they go so quickly today into the real world, they don’t get the funding and the real eyeballs that they need to make it. So they’re going to get that validation from doing the two previous steps. And then once they’re validated, then we will execute on them and activate those proof of concepts, MVPs. And that’s where I truly believe mass adoption will follow.

During the event, members of the Cardano Foundation, the United Nations High Commissioner for Refugees (UNHCR), and the World Trade Organization (WTO) spoke on the impact of blockchain technology and the use cases that can help people in their everyday lives.

This was just the first of many debates, connections, and events that will take place in Decentral House to tear down the physical barriers that will allow the digital space to bloom. Ahmed concluded:

(…) people tell me that Washington DC is the UN capital of the world with all the NGOs, et cetera, go there and try to access those people, try to speak with directors of the UN, you will not be able to. You have a barricade of security guards. They also will not want to speak to. (…) So, Geneva and Switzerland break down the barriers. And in order to (encourage) adoption, we need to break down the barriers. We cannot have all of our masks and shields up and try to improve and grow. We need to have those barriers broken down. And that’s why (we picked) Geneva.

Cover image from Unsplash, chart from Tradingview

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Bitcoin Has Been In A Class Of Its Own For The Last 10 Years, Top Expert Says

Bitcoin has encountered a critical resistance level going into the weekend and could move sideways following a massive rally. According to an expert, the cryptocurrency has been breaching every major obstacle, making it one of the best-performing assets.

As of this writing, Bitcoin (BTC) trades at $43,600 with sideways movement in the last 24 hours. Over the previous seven days, BTC recorded a 14% increase, with Ethereum following its footsteps, recording a 13% rally.

Bitcoin BTC BTCUSDT Chart 1

Bitcoin vs. Gold: The Digital Currency’s Journey to $40,000

Jurrien Timmer, Director of Macro for Fidelity, offers insightful analysis of Bitcoin’s trajectory, likening it to “exponential gold.”

His thesis suggests that Bitcoin, much like its elder counterpart, gold, holds value in times of structural inflation, yet it boasts an added venture twist. In that sense, Timmer believes both assets are prime to capture attention from investors looking to protect themselves from “reckless monetary inflation.”

As seen in the chart below, if Bitcoin follows a similar trajectory to the previous, its price could target $100,000 and $1,000,000 by early 2025.

Bitcoin BTC BTCUSDT Chart 2

2020 was pivotal for Bitcoin and gold, with fiscal and monetary stimulus bolstering their appeal. However, Bitcoin differentiates itself with its capped supply of 21 million coins, contrasting gold’s continual but modest annual supply growth.

This limited supply has propelled Bitcoin’s “stock-to-flow” (S2F) ratio significantly higher than gold’s. Moreover, Bitcoin’s journey reflects the classic S-curve path of technological innovations. Its exponential growth trajectory mirrors historical trends in technology from railroads to cell phones.

However, predicting Bitcoin’s future based on these S-curves is complex, as slight deviations in these growth phases can “dramatically” alter outcomes, the expert claims.

SEC Deliberations And Institutional Interest Shape Bitcoin’s Future

Timmer’s observations include a potential impact of the SEC’s anticipated decisions on the Bitcoin spot Exchange Traded Fund (ETF). He theorizes that pending product applications could attract new investors, yet he remains cautious about whether this will trigger a “sell-the-news” event and a large drawdown.

Interestingly, a small percentage of Bitcoin is held for under three months, suggesting that the recent price surge is not merely “speculative,” offering support for a longer bullish trend.

The true believers in Bitcoin, as indicated by the growing percentage held for over five or ten years, are unlikely to be swayed by short-term news. However, there is notable activity in the Bitcoin futures market, particularly among asset managers, which could suggest anticipation of the SEC movement.

Bitcoin BTC BTCUSDT Chart 3

Any updates from the SEC would arrive in a transformed macroeconomic environment. Unlike the liquidity-rich period of 2020-21, the US Federal Reserve’s (Fed) recent policy shifts have reversed the surge in monetary inflation.

This shift aligns the current situation more with the post-World War II era than the inflationary 1970s, impacting the urgency of the value proposition for gold and Bitcoin.

As BTC matures, its relationship with traditional financial markets and global economic trends becomes increasingly intricate. With the SEC’s decision and a shift in the macro-arena, the coming months are poised to exercise influence over the premier cryptocurrency and the nascent sector.

Cover image from Unsplash, chart from Tradingview

Posted on

Bitcoin Has Been In A Class Of Its Own For The Last 10 Years, Top Expert Says

Bitcoin has encountered a critical resistance level going into the weekend and could move sideways following a massive rally. According to an expert, the cryptocurrency has been breaching every major obstacle, making it one of the best-performing assets.

As of this writing, Bitcoin (BTC) trades at $43,600 with sideways movement in the last 24 hours. Over the previous seven days, BTC recorded a 14% increase, with Ethereum following its footsteps, recording a 13% rally.

Bitcoin BTC BTCUSDT Chart 1

Bitcoin vs. Gold: The Digital Currency’s Journey to $40,000

Jurrien Timmer, Director of Macro for Fidelity, offers insightful analysis of Bitcoin’s trajectory, likening it to “exponential gold.”

His thesis suggests that Bitcoin, much like its elder counterpart, gold, holds value in times of structural inflation, yet it boasts an added venture twist. In that sense, Timmer believes both assets are prime to capture attention from investors looking to protect themselves from “reckless monetary inflation.”

As seen in the chart below, if Bitcoin follows a similar trajectory to the previous, its price could target $100,000 and $1,000,000 by early 2025.

Bitcoin BTC BTCUSDT Chart 2

2020 was pivotal for Bitcoin and gold, with fiscal and monetary stimulus bolstering their appeal. However, Bitcoin differentiates itself with its capped supply of 21 million coins, contrasting gold’s continual but modest annual supply growth.

This limited supply has propelled Bitcoin’s “stock-to-flow” (S2F) ratio significantly higher than gold’s. Moreover, Bitcoin’s journey reflects the classic S-curve path of technological innovations. Its exponential growth trajectory mirrors historical trends in technology from railroads to cell phones.

However, predicting Bitcoin’s future based on these S-curves is complex, as slight deviations in these growth phases can “dramatically” alter outcomes, the expert claims.

SEC Deliberations And Institutional Interest Shape Bitcoin’s Future

Timmer’s observations include a potential impact of the SEC’s anticipated decisions on the Bitcoin spot Exchange Traded Fund (ETF). He theorizes that pending product applications could attract new investors, yet he remains cautious about whether this will trigger a “sell-the-news” event and a large drawdown.

Interestingly, a small percentage of Bitcoin is held for under three months, suggesting that the recent price surge is not merely “speculative,” offering support for a longer bullish trend.

The true believers in Bitcoin, as indicated by the growing percentage held for over five or ten years, are unlikely to be swayed by short-term news. However, there is notable activity in the Bitcoin futures market, particularly among asset managers, which could suggest anticipation of the SEC movement.

Bitcoin BTC BTCUSDT Chart 3

Any updates from the SEC would arrive in a transformed macroeconomic environment. Unlike the liquidity-rich period of 2020-21, the US Federal Reserve’s (Fed) recent policy shifts have reversed the surge in monetary inflation.

This shift aligns the current situation more with the post-World War II era than the inflationary 1970s, impacting the urgency of the value proposition for gold and Bitcoin.

As BTC matures, its relationship with traditional financial markets and global economic trends becomes increasingly intricate. With the SEC’s decision and a shift in the macro-arena, the coming months are poised to exercise influence over the premier cryptocurrency and the nascent sector.

Cover image from Unsplash, chart from Tradingview

Posted on

Bitcoin Has Been In A Class Of Its Own For The Last 10 Years, Top Expert Says

Bitcoin has encountered a critical resistance level going into the weekend and could move sideways following a massive rally. According to an expert, the cryptocurrency has been breaching every major obstacle, making it one of the best-performing assets.

As of this writing, Bitcoin (BTC) trades at $43,600 with sideways movement in the last 24 hours. Over the previous seven days, BTC recorded a 14% increase, with Ethereum following its footsteps, recording a 13% rally.

Bitcoin BTC BTCUSDT Chart 1

Bitcoin vs. Gold: The Digital Currency’s Journey to $40,000

Jurrien Timmer, Director of Macro for Fidelity, offers insightful analysis of Bitcoin’s trajectory, likening it to “exponential gold.”

His thesis suggests that Bitcoin, much like its elder counterpart, gold, holds value in times of structural inflation, yet it boasts an added venture twist. In that sense, Timmer believes both assets are prime to capture attention from investors looking to protect themselves from “reckless monetary inflation.”

As seen in the chart below, if Bitcoin follows a similar trajectory to the previous, its price could target $100,000 and $1,000,000 by early 2025.

Bitcoin BTC BTCUSDT Chart 2

2020 was pivotal for Bitcoin and gold, with fiscal and monetary stimulus bolstering their appeal. However, Bitcoin differentiates itself with its capped supply of 21 million coins, contrasting gold’s continual but modest annual supply growth.

This limited supply has propelled Bitcoin’s “stock-to-flow” (S2F) ratio significantly higher than gold’s. Moreover, Bitcoin’s journey reflects the classic S-curve path of technological innovations. Its exponential growth trajectory mirrors historical trends in technology from railroads to cell phones.

However, predicting Bitcoin’s future based on these S-curves is complex, as slight deviations in these growth phases can “dramatically” alter outcomes, the expert claims.

SEC Deliberations And Institutional Interest Shape Bitcoin’s Future

Timmer’s observations include a potential impact of the SEC’s anticipated decisions on the Bitcoin spot Exchange Traded Fund (ETF). He theorizes that pending product applications could attract new investors, yet he remains cautious about whether this will trigger a “sell-the-news” event and a large drawdown.

Interestingly, a small percentage of Bitcoin is held for under three months, suggesting that the recent price surge is not merely “speculative,” offering support for a longer bullish trend.

The true believers in Bitcoin, as indicated by the growing percentage held for over five or ten years, are unlikely to be swayed by short-term news. However, there is notable activity in the Bitcoin futures market, particularly among asset managers, which could suggest anticipation of the SEC movement.

Bitcoin BTC BTCUSDT Chart 3

Any updates from the SEC would arrive in a transformed macroeconomic environment. Unlike the liquidity-rich period of 2020-21, the US Federal Reserve’s (Fed) recent policy shifts have reversed the surge in monetary inflation.

This shift aligns the current situation more with the post-World War II era than the inflationary 1970s, impacting the urgency of the value proposition for gold and Bitcoin.

As BTC matures, its relationship with traditional financial markets and global economic trends becomes increasingly intricate. With the SEC’s decision and a shift in the macro-arena, the coming months are poised to exercise influence over the premier cryptocurrency and the nascent sector.

Cover image from Unsplash, chart from Tradingview

Posted on

Bitcoin Has Been In A Class Of Its Own For The Last 10 Years, Top Expert Says

Bitcoin has encountered a critical resistance level going into the weekend and could move sideways following a massive rally. According to an expert, the cryptocurrency has been breaching every major obstacle, making it one of the best-performing assets.

As of this writing, Bitcoin (BTC) trades at $43,600 with sideways movement in the last 24 hours. Over the previous seven days, BTC recorded a 14% increase, with Ethereum following its footsteps, recording a 13% rally.

Bitcoin BTC BTCUSDT Chart 1

Bitcoin vs. Gold: The Digital Currency’s Journey to $40,000

Jurrien Timmer, Director of Macro for Fidelity, offers insightful analysis of Bitcoin’s trajectory, likening it to “exponential gold.”

His thesis suggests that Bitcoin, much like its elder counterpart, gold, holds value in times of structural inflation, yet it boasts an added venture twist. In that sense, Timmer believes both assets are prime to capture attention from investors looking to protect themselves from “reckless monetary inflation.”

As seen in the chart below, if Bitcoin follows a similar trajectory to the previous, its price could target $100,000 and $1,000,000 by early 2025.

Bitcoin BTC BTCUSDT Chart 2

2020 was pivotal for Bitcoin and gold, with fiscal and monetary stimulus bolstering their appeal. However, Bitcoin differentiates itself with its capped supply of 21 million coins, contrasting gold’s continual but modest annual supply growth.

This limited supply has propelled Bitcoin’s “stock-to-flow” (S2F) ratio significantly higher than gold’s. Moreover, Bitcoin’s journey reflects the classic S-curve path of technological innovations. Its exponential growth trajectory mirrors historical trends in technology from railroads to cell phones.

However, predicting Bitcoin’s future based on these S-curves is complex, as slight deviations in these growth phases can “dramatically” alter outcomes, the expert claims.

SEC Deliberations And Institutional Interest Shape Bitcoin’s Future

Timmer’s observations include a potential impact of the SEC’s anticipated decisions on the Bitcoin spot Exchange Traded Fund (ETF). He theorizes that pending product applications could attract new investors, yet he remains cautious about whether this will trigger a “sell-the-news” event and a large drawdown.

Interestingly, a small percentage of Bitcoin is held for under three months, suggesting that the recent price surge is not merely “speculative,” offering support for a longer bullish trend.

The true believers in Bitcoin, as indicated by the growing percentage held for over five or ten years, are unlikely to be swayed by short-term news. However, there is notable activity in the Bitcoin futures market, particularly among asset managers, which could suggest anticipation of the SEC movement.

Bitcoin BTC BTCUSDT Chart 3

Any updates from the SEC would arrive in a transformed macroeconomic environment. Unlike the liquidity-rich period of 2020-21, the US Federal Reserve’s (Fed) recent policy shifts have reversed the surge in monetary inflation.

This shift aligns the current situation more with the post-World War II era than the inflationary 1970s, impacting the urgency of the value proposition for gold and Bitcoin.

As BTC matures, its relationship with traditional financial markets and global economic trends becomes increasingly intricate. With the SEC’s decision and a shift in the macro-arena, the coming months are poised to exercise influence over the premier cryptocurrency and the nascent sector.

Cover image from Unsplash, chart from Tradingview

Posted on

Why Bitcoin’s Staggering 260% YTD Surge Could Be Just The Start

The price of Bitcoin slowed down its ascend following a week of smashing critical resistance levels. However, the rally is likely in its early stages, with BTC preparing to see further profits in the coming months.

As of this writing, the cryptocurrency trades at $43,300, reclaiming levels last seen in 2022 before the crash to its yearly lows. In the weekly chart, BTC records a 15% rally, with Ethereum following the trend while other altcoins lagged behind the two most prominent cryptocurrencies.

bitcoin chart btc btcusdt

Spot Bitcoin Jumps 15% In December, Eyes On Potential SEC Approval

The crypto market has witnessed another remarkable surge in Bitcoin (BTC), with a 15% increase in just the first week of December. According to QCP Capital’s latest market update, this growth takes BTC’s year-to-date (YTD) gain to 260%.

This exponential rise is primarily attributed to the anticipation surrounding the approval of a spot Bitcoin Exchange-Traded Fund (ETF) by the U.S. Securities and Exchange Commission (SEC).

On December 1st, the SEC announced that January 5th, 2024, will be the final deadline for rebuttal comments. This timeline sets the stage for probable approval in the week following.

Although QCP Capital humorously notes that the significance of the 15th anniversary of Bitcoin’s Genesis block on January 3rd, 2024, might be lost on the SEC, the “market has certainly taken note.”

As Bitcoin nears the $45,000 mark leading up to the expected announcement, investors are weighing how much of this news has already been priced. The post-ETF approval period will be critical, as the real impact depends on the actual flows from the ETF in its initial trading weeks. A ‘sell-the-news’ event is possible next year if expectations don’t match reality.

Asian Buyers Re-Enter Market, When Altcoin Season?

The December 1st announcement has also spurred renewed interest from Asian buyers, who had been less active in the preceding month. Notably, most of the recent spot gains have occurred during U.S. trading hours as investors in the country take positions in preparation for the SEC announcement.

Bitcoin price BTC BTCUSDT Chart 2

As the market prepares for the launch of the spot ETF, investors won’t find themselves short of options. With 13 applications for spot ETFs and several others for leveraged and options-based ETFs in the pipeline, the traditional finance ecosystem surrounding BTC (and soon ETH) is poised for significant expansion.

QCP Capital anticipates that in a market characterized by low costs and tight spreads, structured products might emerge as a key asset class for generating alpha, similar to other markets like gold. The trading desk noted:

This means that should spot BTC top on launch day itself, it will not stop the Traditional Finance ecosystem boom around BTC, and soon ETH – the likes of which we have been writing about for years now.

A report from the Glassnode co-founders indicates that the altcoin sector is already trying to catch up with the current BTC price action. The current pullback could provide an opportunity for smaller coins waiting to benefit from the bullish momentum.

Cover image from Unsplash, chart from Tradingview

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Ethereum Price 2023 Breakthrough: Surpassing Bitcoin, Altcoin Surge Next?

For the first time in 2023, the Ethereum price has outperformed Bitcoin across several metrics, hinting at a fundamental shift in market structure. The second cryptocurrency by market capitalization follows the general sentiment in the sector, setting new yearly highs.

As of this writing, the Ethereum price trades at $2,300 with a 4% profit in the last 24 hours. Over the previous week, the cryptocurrency recorded a 10% profit, with most of the altcoin sector still lagging the current price action.

Ethereum Price ETH ETHUSDT

Ethereum Price Signals Strength For Altcoin Sector?

A report from BlockScholes posted by the options platform Deribit indicates a spike in the Ethereum price volatility back to its levels above Bitcoin’s. ETH’s shift in market structure hints at traders and institutions gearing up for early 2024.

The report claims that the potential approval of a spot in the US ETH Exchange Traded Fund (ETF) is behind the current price action. This new dynamic suggests that the bullish sentiment above this event slipped from Bitcoin to Ethereum.

As seen in the chart below, Ethereum records a higher return than Bitcoin for the first time since July 2023. The surge in returns, BlockSholes said, allowed ETH to buck a persistent downtrend, but overall, the cryptocurrency’s performance remains in its yearly range.

Ethereum price ETH ETHUSDT chart 2 BS

In other words, the Ethereum price is doing better than in other periods across 2023 but has yet to resume a bullish momentum concerning Bitcoin. However, the report noted:

This reversal is not yet strong enough for us to be confident in a return to the market structure that we had previously come to expect, but does indicate that the effects of speculative bets around the application of a spot ETF are not limited to BTC. This is echoed by the implied volatilities for both assets across the term structure, which forecast similar volatility levels for both assets.

What Favors An Altcoin Rally

In addition, the report noted a decline in the US dollar as measured by the DXY Index. Risk assets can thrive as the currency trends lower, potentially hinting at a loose monetary policy by the Federal Reserve (Fed).

If Ethereum continues gaining bullish momentum from its current levels, the entire altcoin sector could see further profits. The report indicates that most entities and traders are pricing in a “risk event” by the end of January 2024.

Thus, Bitcoin and Ethereum may see a more significant rally by that time. Whichever coin prevails might reveal more information on the subsequent trend; if Ethereum outperformed, then altcoins are more likely to follow.

Cover image from Unsplash, chart from Tradingview

Posted on

Analyzing The Titans: How Bitcoin Whales Influenced The Surge To $40,000

Bitcoin and the crypto market continue to smash critical resistance levels and hit new yearly highs. The cryptocurrency stands closer to the $50,000 area as 2023 ends, and two major bullish catalyzers stand on the horizon.

As of this writing, Bitcoin (BTC) trades at $41,800 with a 6% profit in the last 24 hours. In the previous seven days, BTC recorded an impressive 13% rally as analysts and the crypto community celebrated the beginning of a new bull cycle.

Bitcoin price BTC BTCUSDT

Bitcoin Whales Behind $40,000 Rally, Are More Profits In Store?

Data provided by Ki Young Ju, CEO of crypto analysis firm CryptoQuant, indicates that Bitcoin whales have supported the current price action since August. At that time, the cryptocurrency re-took the higher area at $20,000 and stood below the critical resistance at $30,000.

As Bitcoin trended to the upside, whales took on “giga long positions” potentially in preparation for the current rally. This risk-on behavior began more discretely when BTC touched $16,000.

Young Ju tied the market activity to increased buying orders from US investors. On Coinbase, the price of Bitcoin “skyrocketed” in October 2023.

Investors in the country have been buying more of the cryptocurrency in preparation for the spot BTC Exchange Traded Fund (ETF) approval and the Halving event. The latter of this event is the reduction of the rewards for mining BTC.

Furthermore, the CryptoQuant CEO believes retail investors have yet to board the rally. As seen in the chart below, BTC’s Realized Cap stood below 0.1, indicating “low liquidity” from retail investors in the crypto market.

Bitcoin price BTC BTCUSDT Chart 2

Game Is Not Over For BTC

Additional data provided by Material Indicators confirmed the increasing buying pressure from whales. Analyst Keith Alan claimed that this behavior occurs to attract liquidity to the market.

Once liquidity, mostly from retail investors, enters the market, whales can “distribute” their coins or “dump” on retail to take profit from their position. Via his X handle, the analyst stated the following regarding BTC’s potential to continue the uptrend:

(…) because we now have ~$86M in near range #BTC bid liquidity, I’m considering buying this pullback because it doesn’t appear the game is over yet.

Cover image from Unsplash,chart from Tradingview

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Bitcoin Whales Ready To Push Price Above $40,000? Data Throws Clues

The Bitcoin price has been steadily moving around its current range as 2023 comes to an end. Recent data cast light on the current market structure and what could trigger an extension in the bullish momentum.

As of this writing, Bitcoin (BTC) trades at $37,900 with a 1% loss in the last 24 hours. Over the previous week, the cryptocurrency has traded in the green as other assets recorded small losses, except for Solana (SOL) and Dogecoin (DOGE).

Bitcoin price BTC BTCUSDT

Big Day For The Bitcoin Price: What Whales Are Planning

Data shared by crypto analytics platform Material Indicators shows the current state of the orderbook for trading venue Binance. The world’s largest crypto, looking into this orderbook often reveals patterns and clues to anticipate the price action.

Today, Bitcoin faces two potentially high volatility events: whales will fight over the monthly candle close, and the US will reveal macroeconomic data. Thus, the cryptocurrency could finally break above its current levels or re-test support.

The data from Material Indicators, as seen on the chart below, shows a spike in buying orders from Bitcoin whales and “mega” whales (Purple and Brown on the chart, respectively). This buying pressure is unlikely to translate into a rally as these investors prioritize market efficiency.

Thus, they place small orders on exchanges to reduce slippage, leading the price to range. The good news is that this behavior is often positive for the BTC price by attracting, according to Material Indicators, “bid (buy) liquidity.“

Bitcoin price BTC BTCUSDT Chart 2

Once there is enough liquidity in the order book, whales can sell their positions and avoid downside slippage. The firm stated:

The more they attract, the more they can dump while minimizing slippage. Over the past 7 Days, Purple Whales have Market Bought ~$16M of #BTC and in 4 hours distributed ~$42M to the bidders they lured into the range. Regardless of whether you are bullish or bearish, there are #trading opportunities ahead, as this game appears to be on extended play mode.

In that sense, traders should expect further sideways price action as whales and mega whales take over the market. In the meantime, $40,000 and $35,000 are two critical areas that could hint at a change in the current market dynamic.

Cover image from Unsplash, chart from Tradingview

Posted on

Bitcoin Whales Ready To Push Price Above $40,000? Data Throws Clues

The Bitcoin price has been steadily moving around its current range as 2023 comes to an end. Recent data cast light on the current market structure and what could trigger an extension in the bullish momentum.

As of this writing, Bitcoin (BTC) trades at $37,900 with a 1% loss in the last 24 hours. Over the previous week, the cryptocurrency has traded in the green as other assets recorded small losses, except for Solana (SOL) and Dogecoin (DOGE).

Bitcoin price BTC BTCUSDT

Big Day For The Bitcoin Price: What Whales Are Planning

Data shared by crypto analytics platform Material Indicators shows the current state of the orderbook for trading venue Binance. The world’s largest crypto, looking into this orderbook often reveals patterns and clues to anticipate the price action.

Today, Bitcoin faces two potentially high volatility events: whales will fight over the monthly candle close, and the US will reveal macroeconomic data. Thus, the cryptocurrency could finally break above its current levels or re-test support.

The data from Material Indicators, as seen on the chart below, shows a spike in buying orders from Bitcoin whales and “mega” whales (Purple and Brown on the chart, respectively). This buying pressure is unlikely to translate into a rally as these investors prioritize market efficiency.

Thus, they place small orders on exchanges to reduce slippage, leading the price to range. The good news is that this behavior is often positive for the BTC price by attracting, according to Material Indicators, “bid (buy) liquidity.“

Bitcoin price BTC BTCUSDT Chart 2

Once there is enough liquidity in the order book, whales can sell their positions and avoid downside slippage. The firm stated:

The more they attract, the more they can dump while minimizing slippage. Over the past 7 Days, Purple Whales have Market Bought ~$16M of #BTC and in 4 hours distributed ~$42M to the bidders they lured into the range. Regardless of whether you are bullish or bearish, there are #trading opportunities ahead, as this game appears to be on extended play mode.

In that sense, traders should expect further sideways price action as whales and mega whales take over the market. In the meantime, $40,000 and $35,000 are two critical areas that could hint at a change in the current market dynamic.

Cover image from Unsplash, chart from Tradingview

Posted on

Bitcoin Whales Ready To Push Price Above $40,000? Data Throws Clues

The Bitcoin price has been steadily moving around its current range as 2023 comes to an end. Recent data cast light on the current market structure and what could trigger an extension in the bullish momentum.

As of this writing, Bitcoin (BTC) trades at $37,900 with a 1% loss in the last 24 hours. Over the previous week, the cryptocurrency has traded in the green as other assets recorded small losses, except for Solana (SOL) and Dogecoin (DOGE).

Bitcoin price BTC BTCUSDT

Big Day For The Bitcoin Price: What Whales Are Planning

Data shared by crypto analytics platform Material Indicators shows the current state of the orderbook for trading venue Binance. The world’s largest crypto, looking into this orderbook often reveals patterns and clues to anticipate the price action.

Today, Bitcoin faces two potentially high volatility events: whales will fight over the monthly candle close, and the US will reveal macroeconomic data. Thus, the cryptocurrency could finally break above its current levels or re-test support.

The data from Material Indicators, as seen on the chart below, shows a spike in buying orders from Bitcoin whales and “mega” whales (Purple and Brown on the chart, respectively). This buying pressure is unlikely to translate into a rally as these investors prioritize market efficiency.

Thus, they place small orders on exchanges to reduce slippage, leading the price to range. The good news is that this behavior is often positive for the BTC price by attracting, according to Material Indicators, “bid (buy) liquidity.“

Bitcoin price BTC BTCUSDT Chart 2

Once there is enough liquidity in the order book, whales can sell their positions and avoid downside slippage. The firm stated:

The more they attract, the more they can dump while minimizing slippage. Over the past 7 Days, Purple Whales have Market Bought ~$16M of #BTC and in 4 hours distributed ~$42M to the bidders they lured into the range. Regardless of whether you are bullish or bearish, there are #trading opportunities ahead, as this game appears to be on extended play mode.

In that sense, traders should expect further sideways price action as whales and mega whales take over the market. In the meantime, $40,000 and $35,000 are two critical areas that could hint at a change in the current market dynamic.

Cover image from Unsplash, chart from Tradingview

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Unlocking Bitcoin ETF Profits: Experts Reveals “Best” Trading Strategy

The potential approval of a Bitcoin ETF (Exchange Traded Fund) is bound to open new opportunities for traders. The expectations surrounding this event impact the market now, but an expert believes they will have a more substantial effect in the coming months. 

As of this writing, Bitcoin trades at $37,400 with a 1% profit in the last 24 hours. Over the previous week, the cryptocurrency stayed in the green with a 3% profit, holding the critical level of $37,000 despite the increase in selling pressure.

Bitcoin ETF BTC BTCUSDT

The Lucrative Strategy In Anticipation Of Bitcoin ETF Approval

As Bitcoin’s value soars with a remarkable 125% increase this year, a new trading strategy emerges, promising high returns in the wake of the anticipated Bitcoin ETF. A seasoned market analyst, Markus Thielen, unveils insights into leveraging the evolving crypto market dynamics for profitable trading in an essay posted by options platform Deribit.

Thielen’s analysis reveals an “unusual” trend in the Bitcoin market: despite its significant rally, the 30-day realized volatility remains at a modest 41%, starkly contrasting to the 5-year average of 63%.

According to the analyst, this subdued volatility reflects a declining interest in leveraged Bitcoin options, a direct consequence of institutional players entering the crypto arena.

These players, holding significant Bitcoin assets, will likely sell volatility, fostering a more stable market environment that mirrors traditional financial markets.

In this landscape, the strategy of selling strangles (120% call and 80% put) on a 30-day rolling basis stands out. According to Thielen, this approach has shown profitability in approximately 23% of cases over the past year, as seen in the chart below, marking a significant improvement from the decentralized finance (DeFi) summer’s high-risk profile.

chart 2 Bitcoin ETF BTC BTCUSDT

At that time, DeFi protocols attracted billions in capital to the crypto ecosystem contributing to the incipient Bitcoin rally. While there are differences in the current market dynamics, options players are likely to benefit from this strategy.

This strategy, particularly effective during low-risk periods, suggests a window of opportunity for traders to capitalize on before introducing institutional influence.

Institutional Involvement Expected to Stabilize Bitcoin Market

The anticipated launch of the Bitcoin ETF is set to transform the market further. This event is expected to recalibrate the put/call ratio, which leans heavily toward calls.

Thielen compares it to the S&P 500, where the put/call ratio has been more balanced. The Bitcoin market might soon witness a similar equilibrium, presenting an opportunity for traders to harness volatility through a sell-put strategy.

Furthermore, Thielen notes that the post-ETF approval phase could be the last chance for traders to exploit high volatility levels. Once institutional players begin systematically selling volatility, the market is expected to enter a phase of reduced price fluctuations, making volatility-based strategies less effective.

The analysis also touches upon Bitcoin’s correlation with broader market indicators like the VIX index. While the Bitcoin market has maintained high volatility relative to the VIX index, this gap is anticipated to narrow, offering traders a strategic edge in timing their trades effectively.

In conclusion, as the Bitcoin ETF approaches and institutional participation increases, savvy traders can look towards selling strangles as a strategic approach to capitalize on the current market conditions.

Cover image from Unsplash, chart from Deribit and Tradingview

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Cosmos Co-Founder’s Controversial Proposal Triggers 11% Plunge In ATOM

In a bold move, Cosmos co-founder Jae Kwon has called for a significant shift in the blockchain’s direction following the controversial passing of NWV #848. This proposal was approved by the community’s voting mechanism, earning around 40% of the votes, and it was aimed at changing the blockchain’s native token inflation rate.

Kwon, expressing his dissent, is now advocating for a coordinated “split” in the Cosmos ecosystem, a proposal that could reshape the blockchain’s future. This development comes in response to what Kwon perceives as “deviating from the network’s core principles.”

“AtomOne” Split, Cosmos Co-Founder Urges Community Engagement

Kwon’s proposal, termed “AtomOne,” is not just a divergence but an exodus from the current state of Cosmos, encouraging community members who voted ‘No’ to join this new venture. The plan is still in its infancy and laid out in a GitHub repository, where Kwon invites community ideas and participation in shaping this new direction.

He emphasizes a collaborative approach, urging the community to discuss and contribute to the formation of AtomOne.

The essence of AtomOne lies in integrating $ATOM with $ATMO/$ATOM1, aiming to prevent a “complete collapse of ATOM by mass selling.” Kwon suggests that instead of abandoning ATOM altogether, there should be a way for it to coexist with the new fork.

Cosmos Community Faces a Crossroads: Exodus And Innovation

Kwon’s vision for AtomOne involves forking the current “cosmoshub4” but with its development path and teams, aiming for a more decentralized structure than the current Gaia. This new entity is open to all who opposed the recent vote, signaling a departure from the traditional paths of blockchain governance.

Kwon highlights the power of the minority in blockchain ecosystems and the ability to self-organize and create antifragile structures.

His message is clear: those who do not align with sound logic are destined to fail, and the future belongs to those who dare to exodus and build a better civilization. Kwon assures that this move isn’t about abandoning the original Cosmos hub but saving it and redefining its role.

People are completely confused about the nature of blockchains what power the NO/NWV voters have altogether inside and outside the hub. The reality is that we exist, our principles and goals are aligned because they come from logic and we are about to demonstrate antifragility. The reality is that you cannot take control of a chain even with over 50% consensus, even 67%, because the minority can always self-organize even without your help. And the reality is that those who don’t make decisions based on sound logic always end up failing in the end.

As the community gears up for this potential split, Kwon’s call for a departure to AtomOne reflects a pivotal moment in Cosmos’ history and a testament to blockchain governance’s dynamic and evolving nature. A conversation that will continue for “generations.”

As a result of the split proposal, ATOM has seen a spike in volatility, recording an 11% loss over the past few days. However, speculation is that the split will involve an airdrop poised to attract positive attention for the token.

Cosmos ATOM ATOMUSDT ATOM price

Cover image from Unsplash, chart from Tradingview

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Panic At Binance Following CZ’s Departure? Analyzing 24-Hour Inflow and Outflow Trends

A new era for the crypto industry approaches as the world’s largest exchange, Binance, changes leadership. Yesterday, the company’s founder and CEO, Changpeng “CZ” Zhao, stepped down as part of an agreement with the US government.

The deal might have sparked a new era of adoption and legitimacy for the nascent industry at the cost of CZ’s position and a $4 billion fine. Fresh data looked into Binance’s transactions to check if users believe in the company’s future following the historic decision.

Binance BNB BNBUSDT

Binance Safe From FTX Like Bank Run?

According to crypto analysis firm Nansen data, Binance recorded almost $1 billion in negative netflow following yesterday’s news. The data indicates that the platform’s USDT value decreased by $246 million, followed by Bitcoin’s value, which declined by $76 million.

Users who feel uncertain about the platform’s future withdraw their money, potentially triggering a bank run. However, Nansen’s data shows that this scenario is far from materializing in this trading venue.

While the negative netflows stand at $955 million, there is no “mass exodus” or panic from users trading on Binance. Nansen claims the platform’s holding value increased from $64.6 billion to $65.2 billion.

Binance CZ BNB BNBUSDT Chart 2

The analytics firm previously stated that Binance handled bigger net flows. First, when the US Securities and Exchange Commission (SEC) filed a lawsuit against the company, and later, when FTX went bankrupt following a massive bank run.

As mentioned, Binance seems unlikely to follow a similar fate. Nansen stated:

In the past, Binance has processed higher volumes of outflow and negative netflow: Jun 2023 after the SEC sued Binance, December 2022 after insolvency rumors, and the immediate aftermath of FTX. We will provide another update 24 hours after the news originally broke.

CZ’s Departure Forecast Good Times For Crypto

Across the crypto community, the debate around CZ’s departure has been fierce. However, the consensus is optimistic.

A report from The Block cites major banking institution JPMorgan claiming that the Binance deal removes a “systemic risk” for the industry. In 2022, when FTX collapsed, the price of Bitcoin crashed to a low of $15,000 and took months to recover.

With 150 million users on its platform and millions of capital injected into multiple ecosystems. Binance’s collapse would have been equally, if not more, catastrophic than FTX for the nascent industry.

JPMorgan analyst Nikolaos Panigirtziglou told The Block:

We see the prospect of settlement as positive as uncertainty around Binance itself would subside and its trading and Smart Chain business would benefit. For crypto investors the prospect of settlement would see the elimination of a potential systemic risk emanating from a hypothetical Binance collapse.

Cover image from Unsplash, chart from Tradingview

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Analyst Sets $30,000 Floor For Bitcoin, But Can We Forget 2021’s Misfire?

The price of Bitcoin presses on towards the upside and, once again, touched a critical resistance close to $38,000. The cryptocurrency could trend sideways at its current levels in the short term, leading analysts to find the support level that could withstand a spike in selling pressure.

As of this writing, Bitcoin trades at $37,160 with sideways movement in the last 24 hours. BTC held a 2% profit the previous week, while Cardano (ADA) and Solana (SOL) took the lead in the current price action.

Bitcoin BTC BTCUSDT

The History Of Bitcoin Reveals Mega Bottom For The Current Cycle?

On-chain analyst Willy Woo shared a prediction on his social media channels based on the Bitcoin Cost Basis Density. The analyst investigated the BTC supply dynamics to find where the cryptocurrency could hold off the bears.

Based on his findings, the analyst stated that Bitcoin is unlikely to revisit the $30,000. As seen in the chart below, each time in BTC’s history that the supply moved to long-term investors, the cryptocurrency trends to the upside without returning to this price point: $30,000 for the current cycle.

Bitcoin price BTC BTCUSDT Chart 2

The analyst set 3 conditions to confirm this pattern: first, Bitcoin must be exiting a bear market; second, there must be signs of a “high agreed price;” finally, the cryptocurrency must be about to go through a “Halving Event.”

During the latter, the supply rewards for mining BTC are cut in half along with its production, which often leads to “supply shocks,” according to some analysts. Halving events coincide with the BTC bull run, but other analysts warned against corresponding Bitcoin bull runs with the reduction in its supply.

The Biggest Narrative Driving The Bull Run

However, Woo claims that the potential approval of a Bitcoin Exchange Traded Fund (ETF) might be the more significant catalyst for the cryptocurrency. If the US Securities and Exchange Commission (SEC) approves the product, billions of dollars flow into the cryptocurrency.

The analyst added:

Bitcoin is far from a commodity market at saturation. What we’re seeing across the 13 yrs of this chart is BTC’s widespread adoption. The network had 10,000 users in 2010, today there’s well over 300m people using it as a store of value technology. This is only going to climb with a spot ETF.

The majority of users replying to Woo’s forecast highlighted his 2021 prediction. At that time, the analyst also set some levels that were supposed to hold against a selloff but quickly folded against unprecedented selling pressure.

It remains to be seen if this prediction will suffer the same fate or if the Bitcoin price can hold above $30,000 for the next bull cycle.

Cover image from Unsplash, chart from Tradingview

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OpenAI Setback No Match For FET’s 160% Surge: Time To Invest In AI?

The Artificial Intelligence (AI) sector in the crypto space has enjoyed one of the most prominent rallies despite the debacle with OpenAI. The company behind ChatGPT fired one of its founders and CEO, Sam Altman, sparkling downside pressure for AI-based tokens, such as FET.

The native token for Fetch.ai, FET, has been trending to the upside following the general market sentiment. Over the past month, the cryptocurrency recorded a 160% rally, and it’s poised for further profits as it breaches critical resistance levels.

OpenAI FET FETUSDT FET price

OpenAI Controversy Adds Fuel For FET’s Rally

Data from Coingecko indicates that FET’s bullish momentum took a hit last week as news about Sam Altman leaving OpenAI broke. The token has been moving with any development from the broader AI sector, and the uncertainty surrounding this company has impacted its performance on low timeframes.

Over the weekend, FET regained its bullish momentum and reclaimed territory, extending a more significant rally. In that sense, a pseudonym trader looked into FET’s potential target as the cryptocurrency continues “its rally without a dip.”

In the past week, FET breached the resistance at $0.56, targeting its 2022 highs, as seen in the chart below. If the bullish momentum continues, the token could rise to its 2021 highs between $0.70 and $0.90.

OpenAI FET FETUSDT FET price

FET Rally Could End In Massive Correction

Our Editorial Director and analyst, Tony Spilotro, has been bullish on FET’s trajectory. The analyst believes FET could rise 2x to 4x before losing steam and re-visiting support.

In the past, whenever the token followed a similar trajectory, printing a buy signal above the monthly Bollinger Band, as Spilotro stated, FET corrected by an impressive 80%. Thus, the analyst recommended new investors to tread carefully. Spilotro said:

(…) its safe more than likely to buy FET at such levels, so long as you have a plan to get out before the next 70+% correction happens. Otherwise, price could retrace back to your entry here. Be smart and don’t expect the rally to go on forever.

Today, Microsoft announced the hiring of Sam Altman to spearhead a new AI division. The company will commit to providing resources for the new division, which could ignite a new bull era for AI and AI-based tokens.

Cover image from Unsplash, chart from Tradingview

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Is $40,000 Next? Unpacking 4 Reasons Behind Bitcoin’s Emerging Rally

The Bitcoin price rally is losing strength as the cryptocurrency returns to its support levels following weeks of bullish momentum. In the short term, the landscape seems sloped to the downside, but an analyst presented the main reasons why the rally has just begun.

As of this writing, Bitcoin (BTC) trades at $36,550 with a 2% loss in the last 24 hours. Over the previous week, the cryptocurrency recorded similar losses following the general sentiment in the market. Only Solana (SOL) preserved its gains during the same period.

Bitcoin BTC BTCUSDT

Behind Bitcoin’s Surge: Decoding the Four Key Factors

According to a report from Deribit Insight, posted by Markus Thielen, several forces are pushing Bitcoin towards new yearly highs. These forces remain intact despite the recent price action.

Among the reasons behind the current BTC price rally, the analyst included speculations around the U.S. Securities And Exchange Commission (SEC) Bitcoin Exchange Traded Fund decision, traders’ appetite for leverage, fiat inflows through stablecoins, and increased fee generation within the Bitcoin network.

SEC’s Decision On The Bitcoin ETFs

A significant driver is the anticipation surrounding the SEC’s approval of a spot Bitcoin ETF. Despite passing the second deadline in mid-October without any announcement, the market remains watchful, with the third deadline set for mid-January 2024. The uncertainty surrounding this decision has led to fluctuations in implied volatility, influencing Bitcoin’s value.

Leveraged Positions and Futures Market

The demand for leveraged positions in Bitcoin, primarily through perpetual futures markets, indicates a strong interest in trading the BTC/USDT pair. This was evident when the funding premium reached an annualized +28% on November 13.

In addition, the BTC options market saw an uptick in realized volatility. The increase in the metric signals risk appetite for investors.

The chart below shows that the metric approaches its 5-year average. However, the analyst believes that volatility should decline as the year ends, suggesting that Bitcoin will follow a sideways trajectory in the short term.

Bitcoin price BTC BTCUSDT options crypto
Influx of Fiat Via Stablecoins

Another crucial aspect is the substantial fiat inflow into cryptocurrencies, mainly through Tether’s USDT, indicating fresh capital entering the crypto space. With over $3.8 billion moving into crypto in the last 30 days, this influx has had a notable impact, especially on altcoins, reflecting growing investor confidence.

Increased Bitcoin Network Activity

The Bitcoin network’s fee generation signals heightened activity, reaching $54 million. The report claims that this growth in network usage, partly driven by the resurgence of Ordinals and support from major exchanges, underscores the fundamental strength of the Bitcoin ecosystem.

Despite these positive indicators, the absence of an SEC Bitcoin ETF approval and a reduction in leveraged long positions might prevent Bitcoin from soaring past the $40,000 mark. However, the ongoing solid fiat inflows and a robust, fee-generating Bitcoin network provide grounds for cautious optimism.

Bitcoin’s journey remains captivating as it navigates regulatory decisions, market strategies, and evolving investor sentiment.

Cover image from Unsplash, chart from Tradingview

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Dogecoin Begins Climb: Key Price Targets Set Following Breakout From $0.08

The king of the memecoins, Dogecoin (DOGE), has been following the general sentiment in the crypto market as it breaks out from a critical level. The token experienced selling pressure on low timeframes but seems poised for further profits.

As of this writing, Dogecoin (DOGE) trades at $0.078 with a 1% loss in the last 24 hours. Over the previous seven days, the memecoin held 6% in profits, operating as a top performer in the top 10 by market capitalization.

Dogecoin DOGE DOGEUSDT

Dogecoin On Route For $0.10? Analyst Makes Bullish Case

As mentioned, the Dogecoin rally has found hurdles over today’s trading session, with the price returning below the critical level at $0.08. Crypto trader Rekt Capital claims that the recent price action confirmed a bullish trajectory for the token.

The chart below shows that Dogecoin completed a path from its yearly lows at $0.052 across October and November. As the bulls pushed upwards, the cryptocurrency broke its descending channel, setting a path towards the area above $0.11, last seen in 2022.

Dogecoin DOGE DOGEUSDT chart 2

DOGE Price Likely To Return To All-Time High

A separate report from another crypto trader looks at Dogecoin over high timeframes. The token is close to completing a bigger breakout over its Bitcoin (BTC) trading pair on this horizon.

The analyst cites a series of positive fundamentals for Dogecoin, including its scalability and “low energy consumption” transactions. On the chart above and pointing to the moving average convergence/divergence (MACD) indicator, the analyst stated:

In the $DOGE / $BTC trading pair, bullish patterns and indicators have been observed in the higher timeframes. Notably, a falling wedge pattern is evident in the 4-day timeframe, accompanied by a bullish crossover in the MACD indicator.

Dogecoin DOGE DOGEUSDT chart 3

It remains to be seen if DOGE can return to its 2022 and 2021 high against its Bitcoin and USDT trading pairs. The bullish momentum in the crypto market is holding, albeit with an increase in selling pressure, possibly triggered by speculators taking profit at current levels.

Cover image from Unsplash, chart from Tradingview

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Why $36,300 Is the Key For Bitcoin’s Next Big Bounce: Insights From Liquidity Map

The Bitcoin price returned to its sideways price action following a powerful surge into new yearly highs. The cryptocurrency seems poised for further gains if bulls can hold a critical level.

As of this writing, BTC trades at $36,370, with a 2% loss in the last 24 hours. Over the previous week, the number one crypto by market capitalization recorded a 5% gain, while the sentiment in the sector looks mixed, with BTC recording losses as Ethereum and Solana stayed strong in the same period.

Bitcoin price BTC BTCUSDT

Bitcoin Likely To Bounce If This Scenario Plays Out

According to a pseudonym analyst, the liquidity in the Bitcoin spot market, measured by a “Liquidity Map,” has been allocated to the downside. This metric gauges the amount of leverage in the BTC/USDT trading pair.

The chart below shows that BTC is trading close to a huge liquidation cluster. Overleverage positions create these levels and are often tapped by big players to exploit the liquidity.

BTC whales chase liquidity, moving prices towards the biggest pools of overleveraged positions. If the $36,300 gets tapped, the next level of interest is located to the upside between $36,961 and $37,700. The analyst stated:

Big clusters at $36K and ~$37K. Would expect there to be quite some positions build up around that 37K region mainly as we chopped around it all day yesterday. Bears are back in control on the LTF (Low Timeframe) below $36.3K I’d say.

Bitcoin BTC BTCUSDT BTC price Bitcoin price chart 2

BTC Hits Local Top?

On the other hand, the Bitcoin price could trend sideways between $36,300 and the high of its current range. Additional data from crypto analytics firm Bitfinex Alpha indicates that historical data hints at bad news for optimistic traders.

The firm advises caution for traders as the liquidity gap in the Bitcoin spot market increases. Per recent data, BTC Short-Term Holders Realized Price (STH RP) bought the cryptocurrency at an average price of $30,380, which could incentivize these investors to take profit at current levels.

This is the first time STH has had an opportunity to make a big profit on their BTC holdings since April 2022 and December 2022. Historically, a monthly change in STH RP exceeding $2,000 often signals local peaks, particularly post-recovery in bear markets, as seen in the chart below.

Bitcoin price BTC BTCUSDT chart 3

Concurrently, a negative monthly shift in LTH RP usually implies long-term holders are offloading their Bitcoin. The convergence of a $2,000 increase in monthly STH RP and a decline in LTH RP suggests a high likelihood of a local peak in Bitcoin’s price.

Cover image from Unsplash, chart from Tradingview