- Any hawkish tone from the FOMC meeting might cause Bitcoin to plummet more.
- Due to the gravity of the resistance, the string of little body candles signals hesitation.
Bitcoin (BTC) was under selling pressure early in the week, sending the price down below the $30,000 support level to roughly $29,000. Some on-chain signs suggest potential development despite its relatively dismal prognosis.
The fact that more and more Bitcoins are being removed from crypto exchanges and placed in private hands is encouraging. There are presently just 1.17 million Bitcoin (BTC) available on cryptocurrency exchanges, the lowest quantity held since November 2018.
The #Bitcoin Long-Term Holder Supply has reached a new ATH of 14.52M BTC, equivalent to 75% of the circulating supply.
— glassnode (@glassnode) July 24, 2023
This suggests HODLing is the preferred market dynamic amongst mature investors. pic.twitter.com/rfPmHM9hh2
In addition, Bitcoin’s daily wallet address creation rate has grown, as per statistics from the on-chain analytics platform Glassnode. An increase in network activity like this is seen as a positive indicator. Moreover, data from the analytics platform reveal that a new ATH of 14.52 million Bitcoin (equal to 75% of the total supply) is now held by long-term BTC holders. This data implies that long-term investors opt for a HODLing strategy.
High Volatility Expected
As investors anticipate the probable commencement of the U.S. Federal Reserve’s rate-hike campaign today, the price of Bitcoin (BTC) stalled early in Asia around the $29,200 level. Any hawkish tone from the FOMC meeting today might cause Bitcoin to plummet more.
The 89-week moving average and the top edge of the Ichimoku cloud on the weekly chart have converged to create a critical barrier that BTC/USD has had trouble breaking over since April’s peak of around $31,000. Due to the gravity of the resistance, the recent string of little body candles signals hesitation.
The negative pressure on the market over the medium term could ease if the price is able to break above the resistance level. The possibility of $40,000 is raised by this action. All eyes are now on the FOMC meeting outcome later today with the crypto market including BTC expected to showcase high volatility.
