Fun

News Feed - 2023-07-19 07:07:27

Ray Salmond10 hours agoBitcoin price falls to $29.5K, but on-chain data reflects investors’ growing interestBTC price dropped below $30,000 again on July 18, but the recent crab market price action is also backed by compelling investor activity on-chain.5115 Total views55 Total sharesListen to article 0:00Market AnalysisJoin us on social networksBitcoin (BTC) price dropped below the $30,000 level on July 18, which retail investors may not have expected given the developments of the last month, but does the downside move represent an upcoming shift in the trend? 


Data suggests that over the longer term, it does not.


To get to the positives first, Bitcoin price is still attempting to flip the $30,000 level to support after about 10 attempts since April of this year, but price is continuously finding buyers in the $28,000 to $25,000 range, which buyers seem to be viewing as an accumulation zone.


On-chain data from Glassnode’s Bitcoin Accumulation Trend Score supports this sentiment and could be a positive, depending on how investors’ look at things given that the behavior of investors at $30,000 BTC price mirrors the same accumulation behavior seen in the $28,000 to $24,000 zone and the near the supposed $16,800 bottom.Bitcoin Accumulation Trend Score. Source: Glassnode


According to Glassnode, “an Accumulation Trend Score of closer to 1 indicates that on aggregate, larger entities (or a big part of the network) are accumulating, and a value closer to 0 indicates they are distributing or not accumulating.”


Basically, buyers strongly accumulated from November to December and they were heavy accumulators from March to April when BTC recaptured $30,000. The metric suggests they are doing the same in July as BTC attempts to either conquer the $30,000 resistance or received a boost from all the ETF and XRP SEC news.Bitcoin is in a crab market


The current price action and derivatives market data suggest that Bitcoin is in a crab market, where price remains range bound and consolidates for a prolonged period of time. As JLabs analyst JJ the Janitor pointed out last week, a strong push through the $32,000 level would catalyze a CME gap fill from the Luna Terra-crash era.Bitcoin CME Futures showcasing Luna crash CME Gap. Source: JJ The Janitor


From the perspective of Bitcoin’s weekly market structure, the $30,000 level is an important pivot point that has functioned as support in the previous bull market cycle (and now as resistance) but a grab above that level would essentially set a higher high on the longer time frame and be confirmation of a trend reversal where the next point of resistance is around the $37,000 level.BTC/USDT 1-week chart. Source: TradingView


Traders’ activity in the derivatives market is another factor contributing to the current crab market. Funding is down, open interest is relatively muted and besides retail plebs who are attempting to long breakouts and long lower support retests, or short breakouts and getting liquidated in both instances, a meaningful surge in these metrics that would inspire confidence that price is on the verge of some massive breakout has yet to emerge.BTC/USDT derivatives data, daily chart. Source: JJ The Janitor


Sure, DXY took a dip below 100 last week, but it’s possibly more connected to investors reacting to the Fed’s positive steps on inflation and too tight of a timeframe to expect some massive reaction from BTC immediately.


The price action in crypto exchange futures highlights degen longs and shorts trying to get ahead of price breakouts and that they are not having much success in the short term.


JJ the Janitor suggests that a metric to watch is aggregate open interest, if that breaks down sharply from the current range then some true buy the dip opportunities could emerge. Currently, it’s still in an uptrend, albeit sideways, but seeing a surge in OI could also be interesting and likely news, regulatory or legislative event driven.


Related:Bitcoin price falls under $30K as macro and regulatory worries take center stage


While Bitcoin’s short-term price action might raise some concern among newer investors and day-traders, the on-chain perspective remains quite compelling.The #Bitcoin Long-Term Holder Supply remains at an ATH of 14.5M BTC. This suggests mature investors are preferring to accumulate Bitcoin, rather than distribute. pic.twitter.com/VkY9uTAVGG— glassnode (@glassnode) July 18, 2023


At the same time, the Total Balance in Accumulation Addresses metric has also resumed its uptrend since March 16, when BTC price traded at $25,000.Bitcoin Total Balance in Accumulation Addresses (BTC). Source: Glassnode


Readers should also note that the metric also shows the total balance in accumulation addresses increasing since January 2022, when Bitcoin price was trading at $47,800 per coin. What is apparent is that through the worst of the crypto market collapse and Bitcoin price sell-off, multiple on-chain metrics show investors continuing to increase their allocation to BTC.


This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Bitcoin# Cryptocurrencies# Bitcoin Price# Markets# Derivatives# Market AnalysisAdd reactionAdd reactionRelated NewsHow to check an Ethereum transaction7 payment gateways for fast online transactionsBitcoin rally will lead to "speculative blow-off top” in 2024, Mark Yusko predictsFed rate pause triggers traders’ pivot to stocks — Will Bitcoin catch up?Bitcoin holds $30K as bulls flaunt their advantage in Friday’s $715M BTC options expiryBitcoin price data suggests bulls will succeed in holding $30K as support this time

News Feed

Merchant Services, Gambling, and Darknets: Coronavirus Economy Stunts Cryptocurrency Spending
Merchant Services, Gambling, and Darknets: Coronavirus Economy Stunts Cryptocurrency Spending A lot has changed since the coronavirus pandemic swept the globe as it has caused a
SEC Chair Gensler Warns a Lot of Crypto Tokens Will Fail Following LUNA, UST Collapse
SEC Chair Gensler Warns a Lot of Crypto Tokens Will Fail Following LUNA, UST Collapse The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has warned th
Cryptojacker conned $3.5M from cloud firms to mine crypto, feds allege
Jesse Coghlan7 hours agoCryptojacker conned $3.5M from cloud firms to mine crypto, feds allegeProsecutors claim the “cryptojacking” scheme stole cloud computing resources to mine nearly $1 million worth of crypto.869
Price analysis 3/25: SPX, DXY, BTC, ETH, BNB, SOL, XRP, DOGE, ADA, AVAX
Rakesh Upadhyay5 hours agoPrice analysis 3/25: SPX, DXY, BTC, ETH, BNB, SOL, XRP, DOGE, ADA, AVAXBitcoin has risen above $70,000, indicating that the bulls are back in the driver’s seat.1875 Total views9 Total sharesL
Amaka Nwaokocha48 minutes agoPro-XRP lawyer claims SEC prioritizes corporate capitalism over investorsJohn Deaton believes the unequal treatment raises concerns about the regulatory body’s effectiveness and fairness, a
William Suberg9 hours agoBitcoin analysts flag key BTC price points as bulls cling to $26KBTC price support and resistance lines in the sand are crystallizing amid a fresh bout of low volatility for Bitcoin.1829 Total vi
Bitcoin Derivatives Action Swells: A Few June Futures Trade for $30K, Deribit Adds $140K Options Strike
Bitcoin Derivatives Action Swells: A Few June Futures Trade for $30K, Deribit Adds $140K Options Strike Bitcoin derivatives markets have been seeing significant
Bitcoin, Ethereum Technical Analysis: ETH Back Under $2,000 as Balenciaga Gains Lose Steam
Bitcoin, Ethereum Technical Analysis: ETH Back Under $2,000 as Balenciaga Gains Lose Steam Following strong gains to start the week, BTC once again fell under $30,000, as crypto pr
New Blockchain Book Comes With $25 in Free Crypto when Purchased from blockchainforeveryone.com
Crypto is finally hitting the mainstream publishing industry. Purchases of the new book BLOCKCHAIN FOR EVERYONE, by Sir John Hargrave, made exclusively on Hargrave’s website
Darknet Users Leverage a New Blockchain Analytics Tool That Scans for Ties to Criminal Activity
Darknet Users Leverage a New Blockchain Analytics Tool That Scans for Ties to Criminal Activity According to the blockchain intelligence firm Elliptic, cybercrim
Bitcoin ‘Sales Pressure’ Building Up — What This Means
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
With an ‘Aggressive’ Fed Rate Hike Expected Next Week, Stocks and Crypto Markets Lose Billions
With an "Aggressive" Fed Rate Hike Expected Next Week, Stocks and Crypto Markets Lose Billions Investors will be focused on the U.S. central bank this Wednesday as Federal Reserve