Market
Bullish Move for Bitcoin (BTC)? On-Chain Dynamics Say Yes
The current on-chain dynamics for Bitcoin are setting up a potentially bullish scenario.
Following last week’s insights, Bitcoin has shown strength, currently trading between $67,500 and $70,000 USD. Investors eagerly anticipate continuing this upward trend to reach a new all-time high. Let’s explore why this might happen.
This decrease in sell-side pressure, combined with modest but consistent capital inflows, suggests that the market is preparing for a significant upward move.
Bitcoin Technical Outlook
Bitcoin’s price has found support on the red descending trendline, indicating profit-taking. The price appears poised to test the daily Ichimoku cloud, which would be a major support level.
If the price breaks below the cloud, sentiment could shift to neutral, potentially causing Bitcoin’s price to trend toward $64,000 (Red Tenkan Line).
Let’s Examine Some Key Bitcoin On-Chain Metrics
During Bitcoin bull markets, long-term holders usually sell some of their holdings as prices increase.
This pattern was evident from early 2024 to April, with significant declines in the supply last active for more than 1-year and 2-year cohorts. However, the supply held in UTXOs (unspent transaction outputs) for over 3 years continues to rise. Indicating a long-term bullish sentiment.
More than half of the total BTC supply hasn’t moved on-chain in over one year, reflecting strong holder conviction.
Read More: How To Get Paid in Bitcoin (BTC): Everything You Need To Know
With the price recovering from the $56,000 correction, we can observe that these cohorts have halted the distribution of Bitcoins. Both the 1-year+ and 2-year+ cohorts have ceased selling, indicating a shift towards holding rather than distributing their BTC.
Understanding Bitcoin’s On-chain Support and Resistance Levels with the URPD
The URPD (Unspent Realized Price Distribution) metric provides valuable insights into where Bitcoin is held at various price levels. Think of it as a map that shows the prices at which most people have bought their BTC.
A significant portion of Bitcoin is held at prices within the current trading range of $67,500 to $70,000 USD. Specifically, 6% of Bitcoin’s total supply is held in this price range. This concentration of holdings indicates that many buyers purchased BTC at these prices.
These holders will likely maintain their positions rather than sell quickly, creating a robust support level that helps prevent sharp price declines.
Only 1.1% of Bitcoin’s total supply exceeds the $70,000 price level. This small percentage suggests that very few people bought BTC at prices higher than today’s price. Consequently, there aren’t many sellers looking to sell their Bitcoin for a quick profit, as they would either be at a loss or break-even point.
This lack of selling pressure above the current price creates a favorable environment for potential upward movement, as there is less resistance from profit-taking.
Read more: Bitcoin Price Prediction 2024/2025/2030
Strategic Recommendations
This setup is good news for Bitcoin because it suggests two things:
Strong Support: The large amount of Bitcoin held just below the current price acts like a safety net. If the price drops a bit, many buyers will likely step in and buy more, preventing the price from falling too much.
Room for Growth: With very little Bitcoin held above the current price, there aren’t many holders looking to sell quickly. This means that if more entities start buying Bitcoin, the price can rise quickly to $73,000 because there isn’t much resistance from sellers.
Despite the bullish signals, investors should also be prepared for a potential price reversal. If Bitcoin breaks below the daily Ichimoku cloud, sentiment could shift to neutral, and the price might trend towards $64,000.
It’s essential to have a risk management strategy in place to handle such scenarios, including setting stop-loss orders and being ready to adjust positions accordingly.
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.
ETF issuer WisdomTree’s European division just announced a new ETP based on XRP. This product is currently available in four EU countries, which has led XRP’s price to jump slightly.
ETPs are a common issuer strategy to earn revenue without ETF approval, but Europe will not necessarily approve one even if the US does so.
WisdomTree’s XRP ETP
WisdomTree, one of the Bitcoin ETF issuers in the US, announced that its European branch is offering an exchange-traded product (ETP) based on XRP. This new product is currently available in Germany, Switzerland, France, and the Netherlands. A growing number of issuers have filed for an XRP ETF, but WisdomTree is taking a slightly different tack.
“The WisdomTree Physical XRP ETP offers a simple, secure, and low-cost way to gain exposure to XRP, one of the largest cryptocurrencies by market capitalization. Backed 100% by XRP, XRPW is the lowest-priced XRP ETP in Europe, providing direct spot price exposure,” the announcement claimed.
The possibility of an official XRP ETF is growing with the current bull market, and Ripple CEO Brad Garlinghouse considers it “inevitable.” Still, it hasn’t happened yet, and ETP offerings allow issuers to somewhat address customers’ requirements. BitWise, which has also filed for an XRP ETF in the US, recently acquired a European ETP issuer to enter the same market.
WisdomTree, however, is no stranger to this market strategy. In May this year, it won approval to offer ETPs based on Bitcoin and Ethereum to British investors.
The UK has not yet approved a full ETF for either of these assets, but WisdomTree still gained market access. Even a fraction of the XRP market could also prove lucrative; the asset’s value spiked today.
WisdomTree Europe’s strategy page does not describe any further actions upon full approval. Even if the US approves an XRP ETF under the SEC’s new leadership, that won’t necessarily benefit WisdomTree’s European branch. For now, these ETPs built on XRP will have to suffice for this market.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Ethereum price started a fresh increase above the $3,220 zone. ETH is rising and aiming for more gains above the $3,350 resistance.
- Ethereum started a fresh increase above the $3,220 and $3,300 levels.
- The price is trading above $3,250 and the 100-hourly Simple Moving Average.
- There is a short-term contracting triangle forming with resistance at $3,360 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could gain bullish momentum if it clears the $3,385 resistance zone.
Ethereum Price Regains Traction
Ethereum price remained supported above $3,000 and started a fresh increase like Bitcoin. ETH gained pace for a move above the $3,150 and $3,220 resistance levels.
The bulls pumped the price above the $3,300 level. It gained over 10% and traded as high as $3,387. It is now consolidating gains above the 23.6% Fib retracement level of the recent move from the $3,036 swing low to the $3,387 high.
Ethereum price is now trading above $3,220 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $3,350 level. There is also a short-term contracting triangle forming with resistance at $3,360 on the hourly chart of ETH/USD.
The first major resistance is near the $3,385 level. The main resistance is now forming near $3,420. A clear move above the $3,420 resistance might send the price toward the $3,550 resistance. An upside break above the $3,550 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,650 resistance zone or even $3,880.
Another Decline In ETH?
If Ethereum fails to clear the $3,350 resistance, it could start another decline. Initial support on the downside is near the $3,300 level. The first major support sits near the $3,250 zone.
A clear move below the $3,250 support might push the price toward $3,220 or the 50% Fib retracement level of the recent move from the $3,036 swing low to the $3,387 high. Any more losses might send the price toward the $3,150 support level in the near term. The next key support sits at $3,050.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 zone.
Major Support Level – $3,250
Major Resistance Level – $3,385
Ethereum price started a fresh increase above the $3,220 zone. ETH is rising and aiming for more gains above the $3,350 resistance.
- Ethereum started a fresh increase above the $3,220 and $3,300 levels.
- The price is trading above $3,250 and the 100-hourly Simple Moving Average.
- There is a short-term contracting triangle forming with resistance at $3,360 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could gain bullish momentum if it clears the $3,385 resistance zone.
Ethereum Price Regains Traction
Ethereum price remained supported above $3,000 and started a fresh increase like Bitcoin. ETH gained pace for a move above the $3,150 and $3,220 resistance levels.
The bulls pumped the price above the $3,300 level. It gained over 10% and traded as high as $3,387. It is now consolidating gains above the 23.6% Fib retracement level of the recent move from the $3,036 swing low to the $3,387 high.
Ethereum price is now trading above $3,220 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $3,350 level. There is also a short-term contracting triangle forming with resistance at $3,360 on the hourly chart of ETH/USD.
The first major resistance is near the $3,385 level. The main resistance is now forming near $3,420. A clear move above the $3,420 resistance might send the price toward the $3,550 resistance. An upside break above the $3,550 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,650 resistance zone or even $3,880.
Another Decline In ETH?
If Ethereum fails to clear the $3,350 resistance, it could start another decline. Initial support on the downside is near the $3,300 level. The first major support sits near the $3,250 zone.
A clear move below the $3,250 support might push the price toward $3,220 or the 50% Fib retracement level of the recent move from the $3,036 swing low to the $3,387 high. Any more losses might send the price toward the $3,150 support level in the near term. The next key support sits at $3,050.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 zone.
Major Support Level – $3,250
Major Resistance Level – $3,385
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