Bitcoin’s 2% surge brings relief but raises ‘sell-the-rise’ concerns with rising exchange deposits; support levels and historical trends noted
In a surprising turn of events, Bitcoin (BTC), the world’s largest cryptocurrency, experienced a 2% price jump over the last 24 hours, bringing its trading price to $26,332 and its market capitalization to a whopping $512 billion. This surge comes as a welcome relief for BTC, which has been under constant selling pressure in recent weeks.
However, the sudden price increase has raised concerns about a potential “sell-the-rise” opportunity, particularly in light of the notable surge in exchange deposits. On-chain data provider Santiment has reported that the supply of BTC on exchanges has reached a two-week high. In the last 24 hours alone, over 5,000 Bitcoins, valued at an impressive $128.5 million, have been sent to these exchanges.
After a week of uncertainty, Bitcoin’s 2% rise reinstates it at $26,300. Monitoring exchange BTC supply is crucial, up 3.1% in two weeks. Santiment notes traders are aiming for modest profits. Investors keenly eye $26,000, a pivotal level post-rebound. A double-top pattern emerges, suggesting potential challenges, yet invalidated if Bitcoin stays above $26,000. As stated by the renowned crypto analyst Rekt Capital,
Bitcoin’s Resilience Amid Debt Cycles And Halvings
The $25,500 level serves as a critical support level for Bitcoin. Interestingly, BTC follows a familiar pattern preceding its halving events. Historically, August and September have brought significant price fluctuations for BTC in the year leading up to a halving. Stack Hodler, a prominent crypto analyst, provides insight into the current economic climate, stating,
“We’re approaching the conclusion of a significant debt cycle, and governments will persist in devaluing currencies to meet their nominal debt obligations.”
Assets with limited supplies resistant to confiscation and devaluation are expected to perform well in the long term. Bitcoin is a prime example, having surged by an impressive +342% since the onset of the COVID-19 pandemic and fiat currency surge.
In contrast, assets vulnerable to confiscation and devaluation, like sovereign debt, are anticipated to underperform. Take the example of TLT, a leading Treasury bond ETF, which has experienced a decline of -43% since the onset of the Covid-19 pandemic. As Bitcoin navigates through dynamic market conditions and investor sentiment, its capacity to uphold vital support levels and withstand selling pressure will be pivotal in shaping its future price direction.
