Bitcoin Whales on Accumulation, Exchange Reserves Drop

Last week, the world’s largest cryptocurrency Bitcoin (BTC) moved all the way to $31,000, hitting a new high for the year 2023. On-chain data shows that Bitcoin shark and whale addresses have continued to accumulate at every point during the recent price rally.

As per data from Santiment, addresses holding between 10 to 10,000 Bitcoins have accumulated 71,000 coins over the past three weeks. The data provider noted:

Bitcoin’s sharks and whales aren’t showing any signs of slowing down, even with prices beginning to get “boring” in this $30k to $31k range. Since June 17th, 10 to 10k $BTC addresses have accumulated 71k more coins, equating to $2.15 billion.

However, after hitting $31,000 last Monday, Bitcoin has continued to faced selling pressure and has moved closer to $30,000. But another positive on-chain indicator for Bitcoin has been the drop in the BTC exchange reserve metric over the past month. This hints at a bullish sentiment among market participants.

Bitcoin Technical Analysis

The price of Bitcoin has been testing the $30K level multiple times after surpassing it. Although it has found support at this level, there are some concerning signs, such as a bearish divergence in the RSI indicator, which may indicate a potential correction or reversal soon.

In case of a decline, the 50-day and 200-day moving averages around $28K and $26K could serve as important support levels. On the other hand, if the price keeps rising, it could reach the $38K resistance zone.

The price of Bitcoin has shown unpredictable movements on the 4-hour chart, making it challenging to predict its future path. Currently, it is testing the $30K level, and if it breaks down, there is a possibility of a decline towards the $27,500 level.

The RSI indicator has remained relatively flat, indicating a balance between buyers and sellers with no clear dominance. The ongoing struggle near the important $30K level adds to the uncertainty in the short term.

AD

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.