- Bitcoin’s price has seen a 2% increase in the past 24 hours, trading above $26,000.
- Experts warn of potential selling pressure due to an increase in Bitcoin supply on cryptocurrency exchanges.
- The ability of Bitcoin to maintain a price above $26,000 disrupts the formation of a double top pattern, which is of critical importance.
Bitcoin’s recent price surge has brought some relief to the market, but experts warn of potential selling pressure due to an increase in Bitcoin supply on cryptocurrency exchanges. The ability of Bitcoin to maintain a price above $26,000 disrupts the formation of a double top pattern, which is of critical importance.
Bitcoin’s Market Performance
Bitcoin, the world’s largest cryptocurrency by market capitalization, is currently trading at $26,232, following a 2% surge in the past 24 hours. This recent increase is seen as a relief, given the significant selling pressure the crypto king has faced over the past few weeks.
Increasing Bitcoin Supply on Crypto Exchanges
Market analysts and experts are focusing on the possibility that the recent price increase could turn into a selling opportunity due to an increase in the number of Bitcoins on cryptocurrency exchanges. On-chain data provider Santiment reported that the supply of Bitcoin on crypto exchanges has reached its highest level in the past two weeks, drawing attention to this potential risk.
According to data, over 5,000 BTC, valued at $128.5 million, were sent to crypto exchanges in the past 24 hours. Santiment emphasized that traders and investors are likely to take modest profits, suggesting that the recent price increase could be seen as a profit-taking opportunity.
Potential Price Drop for Bitcoin
Despite the recent upward price jump, Bitcoin continues to face significant support at the $25,500 level. Furthermore, the crypto king continues to replicate its textbook price movements prior to block reward halving. Historically, August and September have been periods of significant declines for Bitcoin in the year preceding block reward halving.
Experienced crypto analyst Stack Hodler focused on Bitcoin’s medium to long-term performance, stating, “We are approaching the end of a significant debt cycle, and governments will continue to devalue their currencies to meet nominal debt obligations.”
In the long run, assets with limited supply like Bitcoin, which are immune to devaluation, tend to gain superiority. For instance, the devaluation of currencies by governments during the COVID-19 wave led to a more than 340% increase in Bitcoin’s price.
Conclusion
While Bitcoin’s recent price surge has brought some relief to the market, experts warn of potential selling pressure due to an increase in Bitcoin supply on cryptocurrency exchanges. The ability of Bitcoin to maintain a price above $26,000 disrupts the formation of a double top pattern, which is of critical importance. Despite the potential risks, Bitcoin’s resilience amidst market volatility continues to make it an attractive asset for investors.
