2023-7-6 19:37 |
Bitcoin kicked off the week with a stable trading range on Monday, maintaining its position within a key resistance area of $30,870 and finding support at $29,700.
This comes after the cryptocurrency reached a yearly high of $31,384 approximately two weeks ago. Since June 23, Bitcoin has been trading sideways, displaying a consolidated pattern as it navigates the abovementioned resistance and support levels.
Notably, Bitcoin has witnessed a significant trend amid its sideways movement. According to Cryptoquant, there has been an 80% decline in addresses sending their coins to crypto exchanges over 612 days. Additionally, since March 2020, Bitcoin reserves on exchanges have dropped by over 30%, marking the first consistent period of decreasing supply in Bitcoin’s history.
“This suggests an enduring and positive evolution in the general perception of Bitcoin, especially when coupled with BlackRock and other ETFs recently filed/re-filed and some of the upcoming regulatory frameworks being introduced among leading markets, particularly the G20. Retail traders and institutions are holding more Bitcoin than ever,” wrote Cryptoquant.
Institutional investors have also continued accumulating Bitcoin, as noted by “Tarek Onchain,” an analyst for Cryptoquant. In a note on Monday, Tarek observed a significant upward trend in the accumulation of BTC by institutional entities, demonstrating a strong interest in acquiring the cryptocurrency at its current price level.
“By closely observing fund holdings, we can identify a significant upward trend in the accumulation of bitcoins by these institutional entities. This exponential increase in holdings indicates a strong interest to acquire Bitcoin, even at its current price level,” said Tarek.
Historically, institutional investors are known to demonstrate a patient approach, seeking long-term investment opportunities in Bitcoin, which is good for price.
That said, from a technical point of view, Diana, a CFA financial analyst, wrote on Monday that bulls appear hesitant to take profits at current prices, which indicates their optimistic outlook for further price gains. In her analysis, Diana argued that if Bitcoin manages to break and sustain its position above $31,000, it could potentially initiate the next phase of its upward trend, with a target of $40,000.
“Buyers must push and sustain the price above the $31,431 mark to signal a resumption of upward momentum,” she added.
Conversely, the pundit mentioned that for the Bears to make a comeback, they would need to drive the price down and maintain it below $27,622.
That said, amid a cautious market sentiment prevailing during the current consolidation period, traders and investors eagerly await a breakthrough above resistance or below support levels, setting the stage for the next substantial price movement. Notably, resilient demand amidst declining exchange inflows and continued institutional accumulation paint a promising future for Bitcoin, hinting at potential upward momentum shortly.
At press time, Bitcoin traded at $30,425 after a 1.99% decline in the past 24 hours.
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