- Recent research shows that Bitcoin is about to break out of the consolidation zone it has been in for days.
- If bullish expectations come true, we will likely see an increase in BTC demand this weekend and maybe next week.
- So far, we have seen some weaknesses in Bitcoin’s price movement below $30,000. This could erase some investor confidence and result in possible lower prices.
Bitcoin has been in a consolidation period for days and is trapped between Bollinger Bands; What kind of price movement should be expected at the end of this period?
Consolidation in Bitcoin is Coming to an End
If you have been closely following Bitcoin, you may have noticed the consolidation that has been happening for the past four weeks. Recent research shows that the cryptocurrency is about to break out of the consolidation zone.
Bitcoin’s Open Interest (OI) has significantly decreased in the past four weeks. Similarly, Bitcoin funding rates have also decreased significantly during the same period.
These results are due to the low volatility that has prevailed during the recent consolidation period. This confirms that the demand has not fully materialized yet. If bullish expectations come true, we will likely see an increase in BTC demand this weekend and maybe next week.
Bitcoin’s price movement has shown some selling pressure since mid-July. This indicates that there could still be more selling pressure contrary to expectations. Such a situation could push the price below the rising support level. This means that we may see an unexpected drop below $28,000.
So far, we have seen some weaknesses in Bitcoin’s price movement below $30,000. This could erase some investor confidence and result in possible lower prices. On the other hand, the MFI indicates that liquidity is slowly flowing back into Bitcoin. The RSI is also in a potential position for a recovery at the 50% level.
Addresses Holding Over 1000 BTC Reduce Their Balances
Taking a look at Bitcoin metrics can give us some insight into the state of BTC. Ultimately, the fate of Bitcoin lies in the hands of addresses holding large balances. Since July 13th, addresses holding over 1000 BTC have reduced their balances.
However, despite the slight outflows, the same metric shows that the amounts held by whales are still relatively high compared to the lowest levels in June. This indicates that there is currently a low selling pressure once again. Therefore, the outcome may still be uncertain. However, thanks to institutional demand, the outcome can change positively.
