Bitcoin is forming a new range near its current levels as the cryptocurrency moves between the $18,600 and $21,000 zone. BTC price has corrected somewhat during today’s trading session and may experience some volatility due to US Independence Day, July 4.th,
Related Reading | Solana (SOL) declined below $33 in the past few days as bearish pressure still persists
At the time of writing, bitcoin is trading at $19,500 with a 4% gain over the past 24 hours.
Data from analyst Ali Martinez shows that bitcoin holdings have increased from 100 to 10,000 BTC. These whales are adding over 30,000 BTC to their holdings.
In addition, Martinez recorded more than 40,000 BTC leaving the crypto exchange platform. The smaller the supply of bitcoin in these locations, the less likely it is to sell in the market.
These market dynamics translated into price action later this week. In addition, the content indicator record Increased investor pressure with a large bid (purple in chart below) that coincides with short-term whale accumulation.
These whales have been “the most influential” on BTC’s price action and could signal more gains. The Materials Indicator also recorded bullish momentum on the weekend’s price action.
In fact, every investor class with over $1 million in bid orders except retail and giant whales is buying into BTC’s price action, as seen in the chart below.
Excessive data provided Buy sentiment has registered a huge increase in the number of long positions on the exchange platform. It coincides with a US holiday, but it’s not necessarily good news for these operators:
4. in the early hours ofth In the US as of July 2022, there has been a huge increase in #longs on exchanges in the last hour. Merchant optimism often correlates with the holidays, which means that overly curious ones require greater vigilance of punishing whales.
What is causing the pain in the bitcoin market?
There are few indicators of potential bullish price action in the short term, but bullish caution should be exercised in long positions. The macro-economic outlook seems less optimistic and could spell more pain for bitcoin and other cryptocurrencies.
Trading desk QCP Capital claims that its bullish outlook is “loose” behind the US Federal Reserve’s (Fed) intentions to slow inflation in the country. The financial institution has been raising interest rates for that purpose, wreaking havoc in the global markets.
Initially, some experts believed that the Fed was going to conduct a “soft landing” and attempt to reduce inflation without harming the economy. This possibility can be ruled out as the Fed finds itself between a rock and a hard place. QCP wrote:
Fed Governor Williams said there was a need to “bring real rates above zero”. This means the Fed can ignore recession risks and will continue raising rates aggressively to reach its target of 3.5%-4% by the end of the year.
Related Reading | TA: Bitcoin Remains in Downtrend, Could a Sharp Rise
On top of the above, financial institutions are draining liquidity from global markets, shrinking their balance sheets. This only signals more negatives for the crypto market.
8/ Recall that the crypto bull cycle was driven by the expansion of the balance sheet. A contraction of this scale will certainly have an impact on prices.
— QCP Capital (@QCPCapital) 4 July 2022