Market
Bitcoin (BTC) Resilience Driven by Whale Accumulation and Key Support
Last Friday, Bitcoin’s price fell from $72,000 to $69,000, causing a 10% average drop across many cryptocurrencies.
This sharp decline has caused the market to be concerned, leading to questions about what’s driving these changes and how investors are reacting. To better understand what might happen next, we’re looking at on-chain data for clearer insights.
Bitcoin’s Whale Activity: Insights Into the Market’s Silent Movers
The on-chain data indicates that whales, the large holders of Bitcoin, are not only retaining their holdings but are also increasing their supply. This strategic accumulation during price dips suggests that these influential market players view the current lower prices as favorable buying opportunities.
Their actions can significantly impact market sentiment and price stabilization, hinting that they may foresee a potential rebound or at least do not expect further significant declines in the short term.
The changes in Bitcoin balance across different cohorts show notable increases.
Specifically, addresses holding 100 to 1,000 BTC saw an increase of 30,601 BTC, those with 1,000 to 10,000 BTC increased by 34,834 BTC, and the largest holders, those with over 10,000 BTC, increased their balances by 24,176 BTC.
These significant increases suggest that larger Bitcoin holders are accumulating more BTC during the recent market correction.
BTC Current Price: Watching the Critical Support Level
The average acquisition price for Bitcoin bought between one day and three months ago is $67,500. Bitcoins bought within this timeframe account for 17% of the total circulating supply.
Should the price fall below this level, it could potentially initiate a cascade of sell-offs as investors rush to minimize losses.
If the price falls below the $67,500 level, it may find support in the $61,000 – $62,000 range, which aligns with the realized price of significant wallet cohorts.
The “realized price” is a financial metric that estimates the average cost at which all Bitcoins in circulation were last moved or transacted. Unlike the “market price,” which fluctuates based on trading activity, the realized price provides insight into what investors paid for their holdings, aggregating this data across all Bitcoins.
If the market price falls below the realized price, it could indicate that, on average, 17% of the circulating Bitcoin supply is held at a loss. This situation might prompt selling pressure as investors attempt to minimize their losses.
On the other hand, if the market price remains above this realized price, 17% of the Bitcoin supply will be in profit. This incentivizes holders to retain their positions for extended periods, potentially signaling a positive trend for the market.
A price surge toward the $72,000 level could be decisive this time, potentially leading to an all-time high breakout in the mid-term.
As detailed in the analysis, this scenario is plausible if Bitcoin can hold its position above the $67,500 support level.
The post Bitcoin (BTC) Resilience Driven by Whale Accumulation and Key Support appeared first on BeInCrypto.
Market
US Election Day Boosts Bitcoin to $70,000: Further Rally Ahead?
Bitcoin’s (BTC) price climbed to $70,000 today ahead of the US presidential election, indicating the connection between major political events and cryptocurrency movements. Historically, political uncertainty and significant elections have influenced crypto market sentiment and volatility.
As the election begins, on-chain analysis provides insights into potential future price movements. Analysts are also weighing in on the implications of the election outcome for Bitcoin, with opinions varying on whether the cryptocurrency could continue its upward trend or face downward pressure. Here are all the details.
Demand Spike for Bitcoin Echoes 2016 and 2020 Trends
According to Glassnode, the Bitcoin price increase comes amid a drop in the sell-side risk ratio. This metric shows whether investors are confident about a bullish performance or if conviction is low.
High values in this metric indicate periods when significant amounts of value are being realized, often correlating with increased market volatility. Such periods are commonly seen during the late stages of bull markets.
Conversely, low values suggest periods with minimal value realization and reduced market volatility. This can also signal macro market bottoms, accumulation phases, and environments with lower sell-side pressure and risk, potentially indicating the onset of future bullish trends.
Read More: 7 Best Crypto Exchanges in the USA for Bitcoin (BTC) Trading
Therefore, the rise in Bitcoin’s price indicates that selling pressure is low, and the US elections could be bullish for the cryptocurrency.
Regarding this development, Juan Pellicer, Senior Researcher at IntoTheBlock, opined that a Donald Trump win would be good for BTC and the crypto market at large.
“The market appears primed for further upward movement, with the US election serving as a potential catalyst. Sentiment suggests that Trump’s more favorable stance on cryptocurrencies could provide the momentum needed for a decisive breakthrough to a new all-time high.” Pellicer told BeInCrypto
Meanwhile, CryptoQuant’s weekly report says that BTC is at a favorable price level ahead of the elections. It noted that the cryptocurrency is currently not overvalued. Hence, if demand increases, Bitcoin’s price might rally post-election.
For instance, BTC prices rallied by 22% between election day and December 2012. In 2016, it climbed by 37%, while the cryptocurrency saw a 98% increase in 2020.
Therefore, if past performance influences future trends, the BTC might reach a new all-time high before the end of the year.
Data from the on-chain data provider also showed that demand for Bitcoin has increased. This is similar to the trends of 2016 and 2020. Hence, if sustained, the Bitcoin price might climb well above $70,000 soon.
BTC Price Prediction: $73,000 Possible
On the 1-hour chart, Bitcoin has attempted to break out on four different occasions. However, each time that happened since October 31, the coin faced rejection. However, today, the trend has changed as bulls pushed the cryptocurrency above $68,336.
This breakout has ensured that Bitcoin’s price has risen to $70,288. Furthermore, the Bull Bear Power (BBP) shows that bulls are in control. If sustained, Bitcoin’s price might rally much higher in the coming days.
Read More: Bitcoin (BTC) Price Prediction 2024/2025/2030
If bullish momentum persists, Bitcoin could potentially climb to $73,623 ahead of the announcement of the US election results. However, should BTC face rejection at resistance levels, this forecast might be invalidated, with the cryptocurrency possibly declining to $67,405.
The post US Election Day Boosts Bitcoin to $70,000: Further Rally Ahead? appeared first on BeInCrypto.
Market
Why Ethereum’s Weak Momentum May Block $2,600 Breakout
Ethereum (ETH) price is showing signs of weakening strength as polls open across most of the US.
Despite a 24% surge in trading volume over the past 24 hours and a modest 1% price uptick, technical indicators suggest a potential downturn. Here’s a closer look at the factors behind this analysis.
Ethereum to Remain “Under”
Readings from the altcoin’s Super Trend indicator reflect Ethereum’s weak price action. At press time, its red line rests above Ethereum’s price, confirming the potential downward trend.
This indicator helps traders identify the prevailing market trend and potential entry or exit points. It detects changes in price direction and determines support and resistance levels, often signaling when to buy or sell an asset. When the Super Trend line moves above the price and turns red, it signals a bearish trend, often considered a sell signal.
On the ETH/USD one-day chart, Ethereum’s Super Trend line is above the coin’s price at $2740, forming a resistance level that may be difficult to breach if new demand fails to enter the market. When the Super Trend line moves above the price, it acts as a resistance level. This is because the line indicates a potential “ceiling” where the price might face resistance if it attempts to rise.
Read more: Ethereum ETF Explained: What It Is and How It Works
Moreover, the setup of ETH’s moving average convergence/divergence (MACD) indicator — which tracks its trend direction, shifts, and potential price reversal points — supports this bearish outlook. As of this writing, ETH’s MACD line (blue) rests below its signal line (orange) and zero line.
This bearish signal suggests that ETH’s short-term momentum is weakening. Traders often interpret this as a signal to exit long positions and take short ones.
ETH Price Prediction: August 5 Low Is Possible
If buying pressure weakens, Ethereum’s price could fall toward its August 5 low of $2,112, marking a 13% drop from its current value. Conversely, a surge in demand could propel the coin to test resistance at $2,508.
Read more: Ethereum (ETH) Price Prediction 2024/2025/2030
A successful breakthrough at this level would set the next target at the Super Trend line resistance of $2,740. Clearing this mark with strong momentum could position Ethereum for a climb toward $2,869 — a level not seen since August.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
AAVE Whales Flood Exchanges,
AAVE, the governance token of the prominent lending protocol Aave, is experiencing downward pressure as large holders, or whales, initiated significant sell-offs early Tuesday.
This analysis explores potential price targets as AAVE’s value reacts to the intensified selling pressure from whales.
Aave Whales Sell Holdings
In a Tuesday post on X, on-chain sleuth Lookonchain noted that AAVE whales are actively selling off their holdings, with significant withdrawals noted in recent transactions.
One whale, identified as address 0x7634, withdrew 25,790 AAVE (around $3.39 million) from the Aave protocol and transferred it to the MEXC exchange. Just three hours earlier, another whale, address 0x790c, had removed 7,822 AAVE (approximately $1.04 million) from Aave and sent it to Binance. Additionally, crypto trading firm Cumberland deposited 10,000 AAVE to OKX.
The action of these AAVE whales has resulted in a sharp rise in its exchange flow balance. Santiment’s data shows that at press time, this balance is 53,000 AAVE, representing its single-day highest flow since September 10.
Read more: How To Use Aave?
The Exchange Flow Balance measures the net flow of a cryptocurrency into or out of exchanges, calculated by subtracting the total amount withdrawn from the total amount deposited. An uptick in this metric indicates that large quantities of the asset are being sent to exchanges. Such substantial inflows often signal potential price drops, as the added sell pressure can overwhelm the market’s capacity to absorb it.
AAVE’s negative price daily active address (DAA) divergence confirms this rise in selling pressure in the market. At press time, the metric’s value stands at -39.24%.
This metric compares an asset’s price movements with the changes in its number of daily active addresses. Investors use it to track whether the price movements are supported by corresponding network activity. A negative value suggests weakening demand and potential selling pressure.
AAVE Price Prediction: Where Risks and Opportunities Lie
AAVE is currently trading at $130.29, hovering slightly above its key support level at $128.45. The diminishing buying momentum signals a potential risk of a drop below this threshold. Should AAVE’s price break through this support, it could fall further to $116.10.
Read more: Top 11 DeFi Protocols To Keep an Eye on in 2024
Conversely, if market sentiment turns bullish, AAVE might see a reversal, with its price likely rallying toward the next resistance level of $140.79.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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