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Impressive Rally Puts Bitcoin Above $24,000, But Is $28,000 Still Possible?

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Bitcoin has rallied once more above $24,000. This impressive rally follows an intense week where the FOMC’s announcement has basically shown that the United States is now in a recession. Investors had flocked to the bitcoin off the back of the news, causing the digital asset to surge immensely during this time. As the digital asset has beat one important technical level, it remains to see if it can beat another.

Accumulation Triggers Rally

There are a lot of factors that usually trigger a rally, such as the one that has sent the price of bitcoin soaring high. One of those has been a renewed accumulation trend from investors who are flocking to the digital asset to provide cover during uncertain economic times. Such a rally, if it continues, can put the digital asset on a well-established bull trend.

Related Reading | Bitcoin Bounces Off Consolidation Range, What Lies In Store?

However, there are still obstacles in the way of bitcoin. This means that even though the digital asset continues to rise now, it could very well witness a reversal trend that sends it spiraling back downwards. To avoid such a fate, it is important that the sellers are completely cut out, replacing these investors and traders with more determined long-term holders.

BTC’s hold on $24,000 remains shaky | Source: BTCUSD on TradingView.com

Whales have been a subset that has been trying to reverse the sell-offs. With the decline in bitcoin, it had presented an opportunity for investors to increase their holdings, and it was especially prominent among investors holding between 100-1,000 BTC on their balances.

Can bitcoin Reach $28,000?

Bitcoin’s recovery has put it on an impressive bullish path. However, this bullish trend has not been fully established. It has seen some obstacles along the way, and bears have begun to put up resistance in the market. 

An example has been at the $24,000 level. Although bitcoin has been able to beat this level multiple times, it continues to fight a hard battle to hold onto it. The mounting resistance at this point has proven to be an important level for bears to hold.

Related Reading | Elevated Bitcoin Open Interest Levels Puts Market In Vulnerable Position

For the cryptocurrency to reach $28,000, it would have to beat the resistance at $24,000 and further at $25,000. Furthermore, there is an expected resistance at $28,000, given that it was the yearly low for bitcoin in 2021. However, if accumulation continues to ramp up at the rate it is, the digital asset has a good chance of reaching this high.

Featured image from GoBanking Rates, chart from TradingView.com

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Bitcoin Long-Term Holders Have Shed 150k BTC Since LUNA Crash

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Data shows the total supply held by the Bitcoin long-term holders has decreased by 150k BTC since the LUNA crash.

Bitcoin Long-Term Holders Have Dumped A Noticeable Amount In The Last Few Months

According to the latest weekly report from Glassnode, the BTC LTHs have observed a sustained decrease of 150k BTC since the crash in May.

The “long-term holder” (or LTH in brief) group is the Bitcoin cohort that includes all those investors who have been holding onto their coins since at least 155 days ago, without selling or moving them. The holders who sell earlier than this threshold are called the short-term holders (STHs).

LTHs are generally the most resolute investors in the market and thus large selling from them doesn’t happen too often. Generally, the more amount of time a holder has held their coins for (that is, the more aged the LTH has become), the less likelier they become to sell at any point.

Here is a chart that shows the trend in the total Bitcoin supply held by these LTHs during the past year:

The value of the metric seems to have been trending downwards in recent months | Source: Glassnode's The Week Onchain - Week 33, 2022

As you can see in the above graph, the Bitcoin supply owned by LTHs seems to have been mostly moving sideways since around November of last year.

The indicator set a high during the month of May of this year, but since then the metric’s value has been on a steady decline.

The beginning of this sell-off from the LTHs seems to have been around the LUNA and UST collapse, an event that triggered a market-wide crash in crypto.

The report notes that the current 155-day long-term holder threshold lies in March, when the price of Bitcoin observed its first relief rally to $46k since the decline from the all-time high.

While the latest selling from the LTHs amounts to just 150k BTC, which is quite small compared to their total supply of around 13.4 million BTC, the report explains that the LTH reserve doesn’t have to significantly decrease for the cohort to go through a capitulation event.

Related Reading: Flippening Forewarning? Ether Options Overtake Bitcoin As The Top Crypto To Trade

In past such capitulations, the LTH supply has only slightly decreased with the weakest investors being eliminated, and stronger accumulation filling up for them.

BTC Price

At the time of writing, Bitcoin’s price floats around $23.4k, down 4% in the past week.

Bitcoin Price Chart

Looks like the value of the crypto has been going down in the last few days | Source: BTCUSD on TradingView
Featured image from Dmitry Demidko on Unsplash.com, charts from TradingView.com, Glassnode.com
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Inflation in Eurozone Surges To 25-Year High of 8.9% in July

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Inflation In Eurozone Surges To 25-Year High Of 8.9% In July
  • On July 21st, the European Central Bank (ECB) stated that it will raise interest rates.
  • The Bank of England has already raised interest rates six times in a row.

Inflation in the Eurozone reached an incredible high of 8.9% in July. The last time it was this high was 25 years ago. From 7.4% in April, 8.1% in May, and 8.6% in June, the CPI has steadily risen. As much as an 8.9% increase was indeed projected by some experts.

The annual inflation rate was estimated to be 39.7%, with energy costs having the highest rate, down from 42.0% in June. The worldwide demand for energy has been negatively affected by the conflict in Ukraine and Russia. Next to energy comes food, drink, and cigarettes, which touched 9.8%, up from 8.9% in June.

Rise in Inflation Across EU

After a small decrease in the previous month, Germany’s inflation rose to 8.5% in July. Both France and Italy have rather high inflation rates right now: 6.8% and 8.4%, respectively. Inflation rates in Estonia are at 22.7 percent, in Lithuania at 20.8 percent, and in Latvia at 21.1 percent.

On July 21st, the European Central Bank (ECB) stated that it will raise interest rates for the first time in eleven years.

The United Kingdom (UK) published its July inflation numbers yesterday. There was a 40-year high in the country’s CPI (Consumer Price Index) increase of 10.1%. In this case, it was the Office of National Statistics that provided the information. Inflation rates across longer time periods in the UK were significantly impacted by the rapid rise in food prices between June and July. The Bank of England has already raised interest rates six times in a row to combat inflation. Inflation will rise to 13.3 percent by October, according to the Bank of England (BOE), before levelling out.

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Ripple Partners With Travelex Bank To Enable Crypto Payments

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Xrp Now Ranks 7Th On Coinmarketcap Ranking, Overtakes Cardano