Tag: BTC price chart

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

[ad_1]

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.

BTC’s price trends to the upside on the daily chart. Source: BTCUSDT on Tradingview

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.

BTC’s Realized Cap below 0.1 hints at retail investors’ low participation in the current PA. Source: CryptoQuant on X

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

[ad_2]

Reynaldo Marquez

Source link

December 4, 2023
Why $36,300 Is the Key For Bitcoin Next Big Bounce: Insights From Liquidity Map

[ad_1]

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.

BTC’s price trends to the upside on the daily chart. Source: BTCUSDT on Tradingview

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.

BTC’s price liquidation map shows significant liquidity to the downside. Source: DaanCrypto on X

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.

Source: Bitfinex Alpha

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

[ad_2]

Reynaldo Marquez

Source link

November 14, 2023
From $35,000 To $500,000? The Bitcoin Rollercoaster This Expert Sees Ahead

[ad_1]

Stephan Livera, an esteemed host of his namesake podcast and Swan Bitcoin’s Head of Education, has now provided the crypto community with projections for Bitcoin’s future trajectory. This week, Bitcoin experienced a rally that took its price to as high as $35,000, marking its highest point since May 2022.

However, amid the favorable climate around a potential spot Bitcoin exchange-traded fund (ETF) approval and institutional adoption, Livera posits that this surge is merely the precursor to a much grander bull run.

The Potential Impetus: A Spot Bitcoin ETF

Approval of a spot Bitcoin ETF could be a game-changer for Bitcoin’s valuation, according to Livera. Conversing with Michelle Makori, the Lead Anchor and Editor-in-Chief at Kitco News, during the Pacific Bitcoin Festival, Livera emphasized the possible ripple effects of such an approval.

While murmurs suggest that ETF approval might be on the horizon by the close of this year, Livera diverges from this sentiment. Livera anticipates this landmark event to materialize more likely in 2024. The Head of Education at Swan Bitcoin noted:

Although many experts predict that [a spot Bitcoin ETF] will come in three to six months, I don’t believe it will happen this year. Next year is the more likely scenario … in the first or second quarter of 2024, which would coincide with the halving cycle, which is expected in April.

Notably, a significant event, such as the halving cycle, will impact Bitcoin’s market dynamics. Historically, this event – which slices the miners’ reward for new block addition to the Bitcoin blockchain by half – has spurred price shifts.

The upcoming cycle will set the block reward at 3.125 BTC. This, combined with the potential spot ETF approval, could catalyze a heightened interest and influx of investments into Bitcoin, according to Livera.

Projected Peaks And Troughs: The BTC Landscape

Livera offers a roadmap of Bitcoin’s possible pricing journey. The Swan Bitcoin’s Head of Education foresees a stabilization around the $30,000 mark shortly, with a potential escalation toward $40,000 as we approach next year’s halving event.

But the real fireworks might commence after the halving, ushering in a wild bull run. Expounding on historical trends, Livera shared:

Historically, what we’ve seen around the halving is a bit of a rise into the halving, then a bit of a selloff after. Six to 12 months out, that’s when the real crazy bull run happens, and you get 10x or 20x in the Bitcoin price at that point.

This extrapolation by Livera culminates in a noteworthy prediction for the end of 2024 – a bold ascent, perhaps reaching roughly $500,000 by 2025 or early 2026, according to the expert.

However, the climb might be coupled with a steep decline. Drawing parallels to gold, Livera posits Bitcoin could potentially mimic its valuation range. Livera added, emphasizing the volatility of the crypto domain:

It’s quite possible that Bitcoin comes close to the range of gold, and that would imply a price in the $500k range. As is a tradition in this industry, we’ll probably hit that as a blow-off top, followed by a drop of 80%. So, it might go to $500k and then crash to $100k.

Bitcoin (BTC) price is moving sideways on the 4-hour chart. Source: BTC/USDT on TradingView.com

Featured image from Unsplash, Chart from TradingView

[ad_2]

Samuel Edyme

Source link

October 24, 2023