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The Number of Bitcoin Whales Has Never Been Higher

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  • Bitcoin has been seeing some strong price action throughout the past few days
  • Bulls have been in firm control, with bears struggling to gain any ground as they fail to spark any meaningful selloffs
  • This price action has allowed BTC to form a market structure that is arguably the strongest seen since before the late-2017 decline
  • This strength is likely to continue growing as BTC shows signs of breaking above its key near-term resistance level
  • A break above $13,200 coupled with a flip of this level into support could propel it up towards $14,000
  • This comes as the number of large Bitcoin holders grows at a rapid pace

Bitcoin is stronger than it has been in years, with bulls currently moving to shatter the resistance that sits at $13,200 as they try to sustain its recent momentum.

This current strength comes close on the heels of a bullish weekly close that helped the cryptocurrency solidify its mid-term strength.

It is important to keep in mind that yesterday’s weekly candle close was the first one seen above $11,700 since early-2018.

It appears that an accumulation trend amongst massive buyers could be driving this strength, as the number of Bitcoin wallet addresses holding over 1,000 BTC just hit a fresh all-time high.

Bitcoin Moves to Break Key Resistance Following Weekly Close

Yesterday’s weekly close undoubtedly provided the cryptocurrency with some technical strength.

At the time of writing, Bitcoin is trading up just over 1% at its current price of $13,200. This is the resistance level that it has been struggling to break over the past week.

If it flips this level into support, it could act as a strong base that allows it to see significantly further momentum in the days and weeks ahead.

BTC Driven Higher by Accumulation Phase from Large Buyers 

One potential suspect behind the recent Bitcoin uptrend could be large buyers who have been accumulating massive positions in the cryptocurrency.

While speaking about wallets holding 1,000 or more BTC, data aggregator Unfolded explained that the number of these wallets just hit an all-time high.

“Bitcoin addresses with balance ≥ 1000 BTC hit a new all-time-high,” Unfolded said while pointing to the below chart from Glassnode.

This trend suggests that so-called “smart money” is flocking to Bitcoin in droves, which is a likely sign that this ongoing uptrend is just getting started.

Featured image from Unsplash.
BTCUSD pricing data from TradingView.





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Bitcoin

Traders look for Bitcoin price daily close at $41K to confirm bullish reversal

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Bitcoin started the week with a strong breakout to $40,900, but today bulls are trying to hold Bitcoin price above the $40,000 level. 

As the price broke from the $31,000 to $39,000 range on June 14, traders speculated that setting a daily higher high and a close above $41,000 would set BTC up for a move to $47,000, but a lack of sustained buy volume and the much-discussed possibility of a death cross between the 50- and 200-day moving average are factors that could be keeping traders cautious.

BTC/USDT daily chart. Source: TradingView

According to Simon Peters, an analyst at eToro:

“Bitcoin is at its highest level since May, a notable recovery but the crypto asset has yet to convincingly break through – and most importantly, close above – the $41,000 mark.

While sentiment has improved and futures premiums have recovered after nearly entering backwardation last week, analysts are unable to confirm that the bull trend has resumed.

Peters said:

“We’ve seen the price face resistance earlier in the year at this level when it was trading around what was then an all-time high, and I would really need to see a stronger increase to feel optimistic about the price recovering and possibly pushing onto $50,000 and beyond.”

Sentiment has improved but the market is flat

Deribit Bitcoin options 25% delta skew. Source: laevitas.ch

Regarding the lack of follow-through from Bitcoin’s June 14 pump, Cointelegraph analyst Marcel Pechman shared the above chart and said that while the 25% delta skew is no longer signaling that extreme fear exists in the market. 

Pechman said:

“Arbitrage desks and market markers are currently uncomfortable with Bitcoin’s price as the neutral-to-bearish put options premium is higher. However, the current 7% positive skew is far from the 20% exaggerated fear seen in late May.”

Even though day traders are on the fence about the status of the trend, a number of on-chain metrics, including the Hodler Net Position Change, show that investors still view the recent dip to $30,000 and Bitcoin’s current price at $40,250 as excellent purchasing opportunities.