The mini-rally that started mobilizing Bitcoin bulls since late Monday came to an abrupt halt today. The BTC/USD pair sank below $9,500 yet again, shattering all hopes of an imminent surge to five-figures.
It turns out, this bearish trend was almost single-handedly kick-started by two mining pools that collectively dumped more than 7,100 BTC onto exchanges. According to new data from the on-chain analytics platform CryptoQuant, the mining pools in question were HaoBTC and Poolin.
The net outflow from these two pools was worth an estimated high of $68 million, reportedly in a single day.
On a related note, another study by Glassnode found that Bitcoin outflows from miner wallets, in general, have surged substantially, with the vast majority landing straight up on exchanges. Many industry observers have taken note of this phenomenon, labeling it a potentially bearish signal.
As for Bitcoin’s chances of hitting the psychological $10k handle in the coming days, let’s head over to BeInCrypto’s technical analysis for the day:
Will Bitcoin Test $10,000 Again?
The Bitcoin price has been increasing since June 20, when it reached a high of $9,170. The following move resembles a five-wave Elliott formation, inside which the price is currently carving out the fourth wave.
Furthermore, the price seems to be in the middle of a rising parallel channel. This is very likely the endpoint of the fourth wave.
- There is support at $9,540, strengthened by the 200-hour MA.
- The 50 and 200-hour MAs have made a bullish cross.
- The price is possibly trading inside a longer-term rising wedge.
Bitcoin Approaches Crucial Point in Wyckoff Distribution
Well-known cryptocurrency trader @ColdBloodShill theorized that Bitcoin is probably trading inside a Wyckoff distribution. He did, however, note that the distribution and re-accumulation phases are very hard to decipher, meaning a breakout or breakdown above/below the trading range would be required for confirmation.
For those out of the loop, the Wyckoff distribution is basically ‘a period of consolidation, which occurs after an upward move, serving as a way for market makers to sell their positions at the desired prices. After this period, the price normally breaks down from the previous range at an accelerated pace.’
A Look Into Ethereum’s Possible Long-Term Movement
Going by Ethereum’s daily chart, it appears that the second-largest cryptocurrency (by market cap) is following a rising support line since the infamous flash-crash on March 12. The support line is strengthened by the presence of the 50-day moving average (MA).
The important thing to consider is that if the ETH price were to break down from here, the odds are relatively high that it will fall all the way down to a range between $190 and $200. That’s the closest support area, which also happens to be backed by the 200-day MA.
Stratis Might Have Begun A Long-Term Upward Trend
For Stratis, the closest resistance area is found at 5700 satoshis, a level that the price has reached twice and subsequently declined. The second attempt created a very long upper wick, which is a sign of selling pressure.
The wick has possibly created a double top pattern, which is basically a bearish reversal formation. Therefore, a decline here is expected. If that happens, the closest support area is found at 4450 satoshis.
What Do You Think Bitcoin Is – a Hedge, Equity, Currency, or Merely a Speculative Asset?
Which asset class does Bitcoin belong to? The answer can be bitterly polarizing sometimes. And this polarization is, in no way, inconsequential for the long-term health of the asset itself, especially when it comes to the regulatory front.
Bitcoin maximalists typically argue that its scarcity makes for a healthy hedge investment. Many hold firm to the so-called “digital gold” narrative.
They believe that Bitcoin’s 21 million coin limit, coupled with its consensus-based value, makes the asset a practical digital gold equivalent.
In this article, BeInCrypto journalist Jon Buck delves deep into the specifics of how Bitcoin appears to be correlated with stocks rather than functioning as a hedge.