Bitcoin Reserve Risk Falls To 2015 Levels, What Happened To BTC’s Price That Year?
Bitcoin has returned to the $20,000 area after experiencing
rejection. The cryptocurrency has been displaying some strength
during today’s trading session despite a spike in the U.S. dollar
which signals danger for risk-on assets. Related Reading
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Respond? At the time of writing, BTC’s price trades at $20,300 with
a 2.2% profit in the last 24 hours. Data from Material Indicators
(MI) records an increase in buying pressure from Bitcoin whales
with bid orders of over $1 million (brown in the chart below).
Large investors have been accumulating BTC over the past week as
the cryptocurrency moved below its current levels. BTC Whales could
have been preparing for bullish continuation. At the time of
writing, every investor’s class except retail is jumping into BTC’s
price action. #Bitcoin #WhaleWatching pic.twitter.com/BOYAEABpyC —
Material Indicators (@MI_Algos) July 5, 2022 The cryptocurrency
needs to break above $20,500 and continue above $22,000 to clear
out any potential short-term downside risk. Material Indicators
records over $20 million in asks order for BTC’s price at around
$20,500 until $22,000 alone. There is little resistance above those
levels until $24,000 which stands as the next major area of
resistance. On the possibility that large investors were
accumulating BTC expecting a larger move to the upside, MI wrote:
The FireCharts heat map and CVD both show that the purple class of
whales which have historically had the most influence over BTC
price have been trending up since the dump to $17.5k on May 18th.
Too early to validate this as accumulation phase. Time will tell.
The key behind the current price action could be the U.S. dollar.
The currency aggressively moved to the upside, to levels last seen
in 2003, and could be about to retest previous lows. As seen below,
this could send the DXY Index to the 105 area or to its June range
below 100, if these levels fail. Thus, providing some more room for
BTC’s price to reclaim higher levels. Bitcoin Indicators Suggest
Bullish Continuation Quantum Economics analyst Jan Wüstenfeld
indicated that BTC’s Reserve Risk dropped to 0.001, a metric used
to measure long-term holders’ conviction. The last time Bitcoin saw
a Reserve Risk this low was in 2015 before it began a persistent
uptrend. Related Reading | Bitcoin (BTC) Claws Back To
$20,000, First Time In 5 Days Currently, there are macroeconomics
factors that could hurdle BTC’s price reclaim of previous highs.
However, the current area could be a major accumulation zone for
the coming months and a good place to apply a Dollar Cost Average
(DCA) strategy. Wüstenfeld said: Bitcoin reserve risk has fallen
below the green box. The last and only other time this happened was
in August 2015. One thing is sure, this cycle is genuinely
different to other cycles due to the macro conditions, and we are
partially seeing that as well in the indicators.
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