Bitcoin dips on weekly close but could recover to $13,000

Bitcoin’s weekly close was $11,650, about 2.20% lower on the week after strong moves in previous weekly candles

Bitcoin is having a slow start to the week, with its price as of writing just 0.48% in the green. As it is, the benchmark cryptocurrency will need higher highs and higher lows to prevent a second week of losses.

Bitcoin weekly price recap

Although prices ranged around $11,550-$11,690, the previous week saw a bullish start. BTC/USD broke resistance above $12,200 for the first time in months to hit a high of $12,485.

A bearish move intraweek meant Bitcoin saw a dip after its strong performance.

The reverse threatened to take BTC/USD to lows of $11,000, with Saturday seeing the top cryptocurrency fall to a weekly low of $11,387. Bulls rallied though and pushed as high as $11,702 on Sunday, with the weekly close found at $12,650.

According to technical analyst and Blockroots co-founder, Josh Rager, a close above $11,527 was good news for Bitcoin heading into the new week.

“Even if price does move lower (wick down) nothing to worry as long as high time frames close above. Aiming for a weekly close tonight above $11,527.”

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BTC/USD weekly close was above $11,500. Source: Josh Rager on Twitter

Bitcoin’s recovery puts it well above $11,500, which is likely to catalyze further gains if bulls clear resistance at $11,700 as seen on the 100 SMA on the hourly chart. However, the slow start to the week could see bears exert more pressure; so to prevent a retest of support around $12,350, bulls need to break above the $11,800 pivot.

This would open a revisit of $12,000 and test the major resistance area found around $12,300. A breakout from here would bring $13,000 into play. On the downside, the first major support is at $11,205, while increased selling pressure could send prices to the $10,700 support area.

BTC/USD price chart. Source: TradingView

Bitcoin exchange reserves hit a 21-month low

According to data from Glassnode, Bitcoin balances on crypto exchanges fell to their lowest levels since 2018. At the time of Bitcoin’s price crash in March (Black Thursday), exchanges held around 2.9 million bitcoins. This week that number had dropped to 2.6 million, suggesting investors had transferred over 300,000 bitcoins off exchanges.

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Bitcoin exchange reserve balances. Source: Glassnode.

Of note, however, is the amount of Bitcoin sold or moved by miners over the week was 15% higher than generated. Probably due to Bitcoin’s rally to $12,485, miners’ “first spend” was 7,288 bitcoins against 6,319 generated this past week.

According to ByteTree, it means miners sold 969 more bitcoins than were minted, a likely scenario for greater selling pressure.

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