Bitcoin (BTC) seems to be experiencing a drop in selling pressure from whale investors as its value remains above $66,500.
The whales are easing off their selling pressure as Bitcoin keeps gaining strength in the past week, holding above $66,500. CryptoQuant head of research Julio Moreno stated in a July 20 X post:
“Bitcoin large sellers are exhausted and valuation metrics suggest positive momentum.”
He said that while referring to Bitcoin investors who hold a balance of 1,000 to 10,000 BTC. Moreno also stated that “realized profits are minimal compared to March or May,” when Bitcoin surpassed $71,000 in both months. Bitcoin hit its all-time high on March 13, at $73,679.
Bitcoin is trading at 66,807, up 9.85% in the past week, based on CoinMarketCap data. While traders and investors are keenly watching the flagship crypto to determine whether it will hold above the long-monitored crucial support level at $65,000, there is speculation over whether it can surge above $69,000.
Crypto trader Milkybull Crypto claimed:
“Bitcoin’s next point to complete the weekly megaphone price pattern is $69k. The megaphone price pattern target is within $84k-$88k.”
The surge to $69,000 would eliminate $261.9 million in short positions, as highlighted by CoinGlass data.
Traders Discover Multiple Bullish Indicators
Nonetheless, Bitcoin has not hit the $68,000 zone since June 12, and traders are noting several other bullish indicators that suggest the current uptrend might continue.
The host of the YouTube channel Young and Investing, Quinten Francious, commented in a July 19 X post:
“Weekly Bollinger Bands are at the same lowest levels ever recorded.”
Bollinger Bands are tools that measure the momentum and volatility of an asset in a certain range.
Philip Swift added:
“Good to see Bitcoin’s price has returned to Short-Term Holder Realized Price.”
This indicator is important for traders since it is the aggregate cost basis of the highly speculative Bitcoin owners. These wallets have stored Bitcoin for not more than 155 days.
The scenario comes after a turbulent month for Bitcoin, during which its price steeply dropped below the $60,000 mark to $53,905 on July 5, before it made a massive comeback.
On the other hand, the crypto trading account On-chain College published in a July 20 X post:
“Bitcoin breaking above a key level, indicating strong momentum and a nice area of support at $64K. This is after a period of BTC moving from weak hands to stronger hands.”
Bitcoin Threw Off Consolidation
Data from TradingView tracked a resurgent Bitcoin, which surprised the market participants after it previously showed a dismal consolidatory behavior.
The founder of quantitative Bitcoin and digital asset fund Capriole Investments, Charles Edwards, responded on X:
“The market hours for IBIT open at 9.30 am ET. Within minutes, Bitcoin shot up from $64K, now above $65K. Did some institution just wake up and decide Bitcoin is a haven decentralized store of value as global tech and banking systems fail from Microsoft’s blue screen of death?”
Edwards referred to the current fallout from an IT collapse that involved Microsoft CrowdStrike software, which affected banks, transport, and other businesses globally.
Simultaneously, confusion increased over the fate of US President Joe Biden’s reelection campaign, with Conflicting reports over whether he would continue. On the other hand, his opponent, Donald Trump, sparked a crypto market rally in the past week after he survived an assassination attempt.
Live data collected from monitoring resource CoinGlass showed Bitcoin eating through overhead ask liquidity at the time of publication. Shorts were starting to feel the heat, with 24-hour cross-crypto short liquidations nearing the $170 million mark.
Popular trader Cheds summarized the whole scenario:
“BTC 4H trying again after some consolidation.”
Trader, analyst, and podcast host Scott Melker, renowned as the “Wolf Of All Streets,” in the meantime, enhanced his coverage of Bitcoin’s relative strength index (RSI), continuing with its bullish mood.
