Categories: Crypto NewsNews

Despite price drop, the number of Bitcoin addresses holding 10 or more BTC increases

Published by
Nonhlanhla P Dube

According to Santiment data, the number of Bitcoin addresses owning 10+ $BTC has increased, notably since the mid-June decline. These addresses have increased by 1.12 % in the last 30 days. In February 2021, 149.2k addresses had ten or more $BTC.

BTC’s Bear Phase

Bitcoin has dropped 4% in the last 24 hours. Its trading volume has also reduced by 3.62 %. It implies that its value has fallen below R339K. On November 10, Bitcoin hit an all-time high of R1.15 million. It is presently trading at 71.57 % of its all-time high.

The recent volatility in Bitcoin has established a bear flag pattern, indicating that the market may be entering a new bear phase. This type of move is frequently followed by a new decline.

The imbalance in the position of the crypto options market is becoming increasingly concerning. If the flag breaks, it might lead to a sell-off. The bear flag is a chart pattern that looks like an upside-down flag. It displays a strong downward movement followed by a slight price recovery.

According to technical analysis, the price of an asset normally dips around the pole portion of the flag following a flag breakdown. This pattern is considered a continuation of the previous bear phase.

Bitcoin’s latest price action has formed a flag, which is a continuation of the previous bear phase. The flag indicates the drop from a peak of R380K to a low of R299K. The rising trend lines connecting the lows of June 18 and July 3 and the highs of July 8 and 26 are evidence that the market is starting a bear flag phase. A breakdown might occur shortly, according to volatility trader Griffin Ardern.

Is a Rally on the Horizon?

The first major resistance level for Bitcoin is at R343K, and it should be followed by a high of R354K to test the next resistance level at R349K. A robust rally would then support a recovery to the R348K mark.

A rally extension would ideally aim for the second major resistance level at R360K and the third at R376.7K. Failure would raise the first major support level to R333K. Bitcoin could avoid a severe sell-off and remain in its current trading range of roughly R323K. The second major support level at R327K is projected to restrain the downside, while the third major support level is at R310K.

In the morning, the price of Bitcoin went below the 50-day exponential moving average (EMA) of roughly R351K. The 100-day EMA, like the asset’s price, fell. The 4-hourly chart illustrates that the price has been in a bearish trend.

A break below the 50-day EMA would imply a possible drop below the R322.6K support level. A bullish cross of the 100-day EMA, on the other hand, would signal a potential bounce to the R1 and R2 levels. The 100-day EMA is currently at R353.6K.

On a daily basis, Bitcoin would have to break over the May 30 high of R551.9K to reach the March 28 high of R818K. The next significant barrier would be R425K in resistance.

Bringing bitcoin back into the green

The new Consumer Price Index for the United States will be released on Thursday. Market participants anticipate a drop in the index following years of monetary stimulus.

If the consumer price index falls, the crypto market may find some relief. Support and resistance levels will remain around R316K and R373.6K. According to Ali Martinez, an analyst, Bitcoin has reached a critical demand wall. Around 570,000 addresses have purchased BTC at present pricing. If the market continues to rise, the next resistance level will be around R355K.

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Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

Published by
Nonhlanhla P Dube
Tags: Bitcoin
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