Bitcoin (BTC) made a push for higher levels during the last Wall Street open of the week, showing resilience against market nerves.
BTC/USD 1-hour chart (Source: TradingView)
The price of BTC surpassed $71,000, displaying a strong resurgence. The previous day was marked by flash volatility due to an ongoing legal battle between Coinbase, a US exchange, and the Securities and Exchange Commission (SEC), which caused Bitcoin to drop below the key support level of $69,000. However, the weakness was short-lived as buyers entered the market to fuel a continued attempt to reach new all-time highs.
Popular trader Skew warned of potential fakeout price behavior resulting from manipulative liquidity moves. One such move was the emergence and subsequent removal of bid support between $70,200 and $70,600 from the Binance order book.
(Source: Skew)
With all-time highs acting as a strong resistance level, another trader, Daan Crypto Trades, speculated on where Bitcoin’s price could go if sellers were overwhelmed. He suggested that breaking the all-time high and reaching the low $80,000s could be the next step for BTC. A chart accompanying his analysis showed near-term trendline support from the 200-period simple and exponential moving averages (MAs) on 4-hour timeframes.
BTC/USD chart (Source: Daan Crypto Trades/X)
Meanwhile, Ki Young Ju, CEO of on-chain analytics platform CryptoQuant, analyzed BTC flows on the blockchain and observed a change in ownership among the largest Bitcoin holders. Long-term investors, known as Bitcoin whales, were selling off their coins while new whale entities, likely institutional investors, were steadily accumulating the supply. Ki noted that US spot Bitcoin exchange-traded funds (ETFs) were removing hundreds of billions of dollars’ worth of BTC from the market daily.
Bitcoin supply transfer chart (Source: Ki Young Ju/X)
This shift in ownership has been reflected in previous bull markets, leading to new all-time highs. Despite this, mainstream interest in Bitcoin has been declining in recent weeks, even as the cryptocurrency continues to reach new highs.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and assess the risks involved before making any investment or trading decisions.