Connect with us

Bitcoin

Is BTC Preparing For $72,000?

Published

on


Bitcoin is steady when writing, floating above immediate support levels and inches away from reclaiming the all-important local liquidation line at around $66,000. Even as the broader crypto community expects buyers to step in and push prices higher, there are exciting developments that buttress this outlook.

Billions Worth Of BTC Pulled From Exchanges

According to exchange data shared by one analyst on X, BTC holders increasingly pull their coins from exchanges.

On July 5, when prices tanked, pushing the world’s most valuable coin close to $50,000, a staggering $3.8 billion BTC was moved from exchanges.

BTC moving from exchanges | Source: @Woo_Minkyu via X
BTC moving from exchanges | Source: @Woo_Minkyu via X

Once this happened, prices rapidly bounced back, rising from as low as $53,500 to $65,000 recorded earlier this week. Though prices have been moving horizontally above $62,500 recently, more BTC is being withdrawn. On July 16, BTC owners pulled another $3.4 billion of the coin.

Even though there is no clear impact on prices, if past performance guides, it is likely that prices will edge higher like they did after the collapse to $53,500.

Bitcoin price trending higher on the daily chart | Source: BTCUSDT on Binance, TradingView
Bitcoin price trending higher on the daily chart | Source: BTCUSDT on Binance, TradingView

 

Usually, analysts interpret exchange outflows as positive for price. Whenever coin holders move assets to non-custodial wallets, they want to take control of their coins. As such, they might be unwilling to sell.

Their decision helps support prices since they won’t sell on demand if they wish to, like if they held them on crypto platforms like Binance or Coinbase. Moreover, with fewer BTC readily available on exchanges, bulls tend to benefit due to increased scarcity.

Is Bitcoin Preparing For Another Leg Up Above $72,000?

Beyond this development, another analyst notes that the Realized Profit and Loss Ratio metric has fallen and stands at multi-month lows. The metric is used to gauge market sentiment, mainly influenced by profit and loss at any point in time.

Realized profit and loss ratio falling | Source: @AxelAdlerJr via X
Realized profit and loss ratio falling | Source: @AxelAdlerJr via X

This decrease suggests that investors who wanted to exit at highs have already taken profit. For now, traders must wait for these metrics to rise, perhaps to multi-month highs, ideally above $72,000 and $74,000, before profit-taking resumes.

Bitcoin has also reclaimed its average cost basis of short-term holders (STHs) as prices recover above $62,000. Those who bought within the last 155 days are now in the money. They are likely holding and expecting more gains in the coming sessions before realizing profits.

In the past, whenever the average cost basis is surpassed, CryptoQuant analysts say prices tend to rise by over 30%.

Feature image from DALLE, chart from TradingView



Source link

Bitcoin

Bitcoin price ready for bullish breakout, analysts say

Published

on


Bitcoin price held steady above the crucial psychological level of $60,000 as crypto analysts predicted further upside in the coming weeks.

Bitcoin (BTC) was trading at $60,200, its highest level since Aug. 27 as investors moved back to risk assets ahead of the Federal Reserve decision.

Analysts are upbeat

Gold has jumped to a record high while American indices like the Dow Jones and Nasdaq 100 indices had their best week in months, 

Notably, Bitcoin seems to have avoided forming a death cross pattern, which happens when the 200-day and 50-day moving averages cross each other. Instead, it has moved slightly above the two averages, which is a positive sign. 

Bitcoin Price
Bitcoin price chart | Source: TradingView

Meanwhile, some of the most notable crypto analysts are bullish on the coin. In an X post, pseudonymous crypto analyst Titan noted that the coin may have a breakout to $92,000.

His theory is that Bitcoin tends to move by at least 40% whenever it flips the 50-day simple moving average. He expects that the coin will jump by 71% in the coming months. 

In a separate post, he noted that Bitcoin had reclaimed the Tenkan Kijun and moved above the Kumo cloud of the Ichimoku cloud indicator. Also, the Relative Strength Index broke above the multi-month trendline, pointing to more upside. 

In another X post, Michael van de Poppe, a popular analyst with over 724,000 followers, noted that Bitcoin may remain in a consolidation phase and then have a bullish breakout at the end of the month or early October.

Santiment, the popular crypto analytics firm, also identified potential bullish catalysts for Bitcoin.

In a post, it noted that Bitcoin was seeing more accumulation by whales and sharks at a time when supply on exchanges was falling. 

Bitcoin volume in exchanges is falling

Data by CoinGlass shows that the volume of coins in exchanges dropped to 2.34 million, down from the year-to-date high of over 2.72 million.

That is a sign that many Bitcoin holders have no intention to sell their coins any time soon. Instead, some big holders like MicroStrategy have continued to accumulate. 

There is also a seasonality case for Bitcoin. According to CoinGlass, Bitcoin tends to have negative returns in the third quarter and then rebound in the fourth quarter. 

It has dropped in seven third quarters since 2013 and risen in five quarters.

The average third-quarter return is 5.59% while the average Q4 returns are 88%. September is usually the worst month for Bitcoin while October and November are the best.

Bitcoin quarterly returns
Bitcoin quarterly returns| Source: CoinGlass

Another catalyst, as we wrote on Sept. 14, is that stablecoin holdings by smart money investors have continued moving downwards this year.

After peaking at 35.17% after the FTX collapse in November 2022, it has dropped to just 3.92%. That is a sign that most smart money investors are fully invested in coins like Bitcoin and Ethereum (ETH).





Source link

Continue Reading

Altcoins

Analyst Benjamin Cowen Predicts Altcoin Bleed-Out Toward End of the Year – Here’s Why

Published

on


A widely followed crypto analyst is issuing a warning, saying that the rest of 2024 looks less than ideal for altcoins.

In a new video update, crypto strategist Benjamin Cowen tells his 813,000 YouTube subscribers that based on historical patterns, altcoins appear set to plummet near the end of the year and capitulate against Bitcoin (BTC).

Cowen says the capitulation also lines up with the beginning of a new interest rate-cutting cycle.

“If you connect the dots from the last cycle, 2018, 2019 to 2020, you can see that it basically tagged this trend line three times and then the third tag of the trend line ended up being the bottom.

We know that this interest rate cycle, this business cycle, has taken a little bit longer and if you connect the dots again – one, two and three – the third tag of the trend line might actually occur by the end of the year and coincidentally if you look at this trend line where you connect the dots, it hits 0.25 in Q4 which is exactly what I’ve said could be the ultimate outcome: alt/Bitcoin pairs capitulating before the end of the year.

So I think there is a case to be made that alt/Bitcoin pairs will simply get rejected at 0.4, they could still wick a little bit above it, but I ultimately think they will get rejected and they will come back down to the range lows before the end of the year.”

Source: Benjamin Cowen/YouTube

According to Cowen, altcoins will also bleed out against the top crypto asset by market cap due to low net global liquidity, which he argues is a big driver for digital assets.

“One of the things that you have to consider is what’s causing this to go down and arguably one of the main things is net liquidity. So if you look at the global net liquidity approximation, you will see that it has in fact been putting in lower highs and lower lows for a while and actually if you overlay this chart with alt/Bitcoin pairs, you can actually pretty clearly see that alt/Bitcoin pairs broke down to the fake out right at the same time net liquidity was having a fake breakdown.”

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Anna Anikina

Generated Image: DALLE-2





Source link

Continue Reading

Bitcoin

$1.3b Bitcoin left exchanges, bulls deny losing $60k

Published

on


Bitcoin’s surge above the $60,000 zone has triggered an uptick in outflows from centralized exchanges as investors expect further bullish momentum.

According to data provided by IntoTheBlock, Bitcoin (BTC) witnessed $1.29 billion in net outflows from CEXs over the past week. The movement shows increased accumulation as most on-chain signals look bullish for the flagship cryptocurrency.

$1.3b BTC left exchanges, bulls deny losing $60k - 1
BTC CEX net flows – Sept. 15 | Source: IntoTheBlock

Most of the outflows, around 12,420 BTC, came on Sept. 10 when the asset’s price struggled below the $57,000 mark, per ITB data.

Notably, the large holders’ net flow to exchange net flow ratio shows that Bitcoin holders started profit-taking on Sept. 13 as the price reached $60,000 after falling to a local bottom of $52,600. 

Bitcoin witnessed a large holder net outflow of 9,180 BTC on the same day. The on-chain movement shows a massive selloff by whales, sending the asset’s price below $60,000. 

Expect lower price volatility

According to a Friday report by crypto.news, MicroStrategy purchased 18,300 BTC for roughly $1.11 billion despite the whales’ selloff.

However, the trend soon shifted to accumulation again on Saturday, Sept. 14, with the ratio reaching 0.43%, according to ITB.

The large holders’ net flows bounced to the positive zone, with 3,240 BTC in net inflows yesterday.

Bitcoin gained 0.2% in the past 24 hours and is trading at $60,100 at the time of writing. The asset’s market cap is currently sitting at $1.86 trillion. BTC’s daily trading volume, however, decreased by 57%, reaching $13.7 billion.

$1.3b BTC left exchanges, bulls deny losing $60k - 2
BTC price – Sept. 15 | Source: crypto.news

At this point, lower price volatility would be expected for Bitcoin as the price consolidates close to the psychological $60,000 zone. However, a decline below $59,000 could trigger a high amount of liquidations, leading to another potential downfall.



Source link

Continue Reading
Advertisement [ethereumads]

Trending

    wpChatIcon