Bitcoin Ready For Fireworks? Long Positions See Uptick This 4th Of July
July 04 2022 - 10:32AM
NEWSBTC
Bitcoin seems to be forming a new range around its current levels
as the cryptocurrency moves between the $18,600 and $21,000 area.
BTC’s price has seen some recovery during today’s trading session
and might experience some volatility due to the U.S. Independence
Day, July 4th. Related Reading | Solana (SOL) Stuck Below $33
In Past Days As Bearish Pressure Still Intact At the time of
writing, Bitcoin trades at $19,500 with a 4% profit in the last 24
hours. Data from analyst Ali Martinez indicates an increase in
Bitcoin holdings from addresses with 100 to 10,000 BTC. These
whales have been adding over 30,000 BTC to their holdings. In
addition, Martinez records over 40,000 BTC leaving crypto exchange
platforms. The less Bitcoin supply there is available on these
venues, the less it can be sold on the market. These market
dynamics translated into this weekend’s price action. In addition,
Material Indicators records an increase in buying pressure from
investors with a large bid (purple in the chart below) which
coincides with short-term whale accumulation. These whales have
been the “most influential” over the BTC’s price action and could
be hinting at more gains. Material Indicators also recorded bullish
momentum on the weekend’s price action. In fact, every investor
class except retail and massive whales with over $1 million in bid
orders seems to be buying into BTC’s price action, as seen in the
chart below. Additional data provided by Santiment records a huge
uptick in the number of long positions across exchange platforms.
This coincides with the U.S. holiday, but it’s not necessarily good
news for these operators: In the early hours of 4th of July 2022 in
the US, there has been a massive uptick in #longs on exchanges in
the previous hour. Trader optimism often correlates with holidays,
which means there needs to be a greater degree of cautiousness of
whales punishing the overly eager. What Is Causing Pain Across The
Bitcoin Market There are some indicators of possible bullish price
action in the short term, but the uptick in long positions merits
cautions. The macro-economic outlook seems less optimistic and
could spell more pain for Bitcoin and other cryptocurrencies.
Trading desk QCP Capital claims its bullish outlook is “waning” on
the back of the U.S. Federal Reserve’s (Fed) intentions of slowing
down inflation in the country. The financial institution has been
increasing interest rates for that purpose wreaking havoc across
global markets. Initially, some experts believed the Fed was going
to attempt to conduct a “soft landing”, and bring down inflation
without harming the economy. This possibility might have been ruled
out as the Fed finds itself between a rock and a hard place. QCP
wrote: Fed Governor Williams stated the “need to get real rates
above zero”. This means that the Fed is likely to ignore recession
risks and will keep raising rates aggressively to reach their
target of 3.5%-4% by year-end. Related Reading | TA: Bitcoin
Remains In Downtrend, What Could Spark Sharp Upside On top of the
above, the financial institutions have been reducing liquidity off
global markets while shrinking their balance sheet. This only
signals more downside for the crypto market. 8/ Remember that the
crypto bull cycle was fueled by balance sheet expansion. A
contraction of this scale will surely have a dampening effect on
prices. — QCP Capital (@QCPCapital) July 4, 2022
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