Bitcoin price is up 12.2% over the past 30 days after factoring in the correction from its 12-month high of just over $31,500. However, that same uptrend will come under increasing pressure, especially if the immediate support at $30,000 breaks and bears let through.
The Paradox of Waxing Whales and a Struggling Bitcoin Price
Glassnode, a blockchain data analytics company, has revealed that large bitcoin holders, colloquially known as “whales,” are increasing their holdings even as bitcoin struggles to continue its uptrend.
Additionally, these same whales are reluctant to move their assets to exchanges, with cold wallet storage being the most preferred option. CoinDesk believes investors are aware of the risk involved in exiting digital assets from exchanges, in addition to regulatory barriers, or both.
If the trend continues and we see fewer and fewer bitcoin offers hitting exchanges as whales increase, it would be an optimistic gesture.
Chart of Bitcoin Whales | Source Glassnode
What’s Holding Bitcoin Price Down?
Despite growing interest from whales, the largest cryptocurrency has been bombarded with multiple economic data reports: Wednesday’s Federal Open Market Committee (FOMC) minutes and Thursday’s Jobs and Services reports.
The FOMC minutes reinforced Fed Chair Jerome Powell June’s comments on why investors should expect more rate hikes in the second half of 2023.
Bitcoin and Ethereum did not take well to the ADP report, which showed the private sector added 497,000 jobs. Additionally, the ISM sector index rose to 53.9 in June, eclipsing the market estimates of 51.2 and 50.3 in May.
The report serves as a new catalyst for the US Federal Reserve to justify further rate cuts as it grapples with the task of containing inflation.
This hawkish stance typically puts significant pressure on cryptocurrency and other risk assets markets amid widespread fears that the Fed’s actions could plunge the economy into a deep recession.
Can Bitcoin Price Beat the Odds?
Bitcoin price is mainly based on its position above $30,000 thanks to increased investor interest fueled by several spot BTC ETF applications including one from largest asset manager Blackrock.
This time, investors believe; The SEC will break the norm of denying proposals, especially if Blackrock CEO Larry Fink promises to work hand-in-hand with regulators.
Meanwhile, BTC is struggling with mounting overhead pressures as more investors wait for Bitcoin to weaken resistance at $31,000 and resume uptrend near $35,000 and $38,000 in the short term.
BTC/USD daily chart | trading view
Although bitcoin price slipped to $29,745 on Thursday, it has since recovered above $30,000 and is trading at $30,088 towards the end of Friday’s Asian session. Support at $30,000 has been bolstered by the presence of the 100-day Exponential Moving Average (EMA) (blue line).
According to Captain Faibik, an aspiring crypto analyst with 62,000 followers on Twitter, bitcoin price forms a rectangle on the daily timeframe chart. While this is a bullish pattern, according to Faibik, bulls need to clear the $31,125 hurdle to confirm a breakout.
$BTC forming a bullish rectangle on daily timeframe chart..!!
Bulls need to clear the 31,125 resistance to confirm the breakout. #Crypto #Bitcoin #BTC pic.twitter.com/8TezfsJWGi
— Captain Faibik (@CryptoFaibik) July 7, 2023
A confirmed bullish breakout would mean bitcoin price rising and staying above the rectangular resistance. A sudden surge in volume would further confirm the bullish move as traders bet BTC to close the gap to $35,000.
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John is a renowned crypto analyst and journalist providing expert insight into broad and focused aspects of the digital asset market. A consistent reporter, he keeps his audience updated on the latest news in the crypto space, covering topics such as price trends, on-chain data analysis, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the ever-evolving metaverse.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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