Mounting Support For Bitcoin At $19,000 As Market Ushers In A New Week
July 04 2022 - 1:00PM
NEWSBTC
Bitcoin has come out of the weekend with less than favorable
performance but it has not been all bad for the digital asset
either. After falling below $20,000, it trended low towards the end
of last week. However, the cryptocurrency has been able to hold the
$19,000 level despite efforts from the bears to pull it down. This
has been due to a number of factors but most importantly is the
support that has been forming at this level. Support At $19,000
After struggling to hold above $19,000 for most of last week, the
digital asset had subsequently found its footing above $19,000.
This price point is important for bitcoin given that it was where
its previous cycle peak had occurred. Although it had actually
broken below this point multiple times this year already. However,
with the recovery above 19,000 once, the bulls look to have found
their spot and the support at this level has been growing. Related
Reading | Leading Crypto Exchanges See Negative Funding Rates,
Have The Bears Taken Over? It is propelled forward by bitcoin
investors who are taking this as a cue to buy the digital asset for
cheap. Mostly, whales have been the most active during this time
even amid the extremely low investor sentiment. These whales who
are purchasing their tokens on spot continue to fill their bags.
Data shows that these wallets that hold more than 1,000 BTC on
their balances have added 140,000 BTC per month, which has brought
their total holdings to 8.69 million BTC. This means that these
bitcoin whales now hold 45.6% of the total circulating supply. BTC
continues recovery trend | Source: BTCUSD on TradingView.com The
whales are not the only ones buying up bitcoin. Smaller holders
with less than 1 BTC have also ramped up their activities by buying
at these prices. They have added to their balances at a rate of
36,750 BTC per month, bringing their total holdings to 1.12 million
BTC, or 0.2% of the circulating supply. Will Bitcoin Continue To
Hold? As of the early hours of Monday, bitcoin had begun another
recovery trend that has put the price above $19,300. Although not a
significant recovery by any stretch, it has put the digital asset
on a green start to the new week. Related Reading | New
Bitcoin Record Paints Incredibly Bearish Picture As BTC Struggles
At $19,000 Nevertheless, the digital asset continues to trade below
important technical levels such as the 50-day movie average. Due to
this, the chances of bitcoin holding the recovery trend through the
rest of the week remain slim as there is not enough demand to
offset the coins being dumped by the sellers. This means that while
the price will likely recover above $19,500, there may be another
downtrend before the day is over. This will put the mounting
support at the $19,000 level to the test. But if bitcoin can
continue to hold and the market sees a significant spike in demand,
the next major resistance awaits the cryptocurrency at $20,500.
Featured image from FortuneBuilders, chart from TradingView.com
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