Bitcoin to Spend ‘Considerable Time’ at $66K, HODLing Could Change That
Warren Takunda
2024-07-24Bitcoin is just 12% shy of all-time highs, but a trader says it could stay in this zone for at least the next few months unless demand comes through.
The price of Bitcoin may hover around the $66,000 zone until September, and if so, will provide investors with ample opportunities to accumulate, according to a crypto trader.
“We will spend considerable time here and accumulate,” pseudonymous crypto trader Emperor wrote in a July 23 X post after explaining that the $66,000 price level has been “broken multiple times and then retested as support.”
Bitcoin breached the $66,000 level on July 20 for the first time in 37 days and has been hovering around that area ever since, according to CoinMarketCap data. At the time of publication, Bitcoin is trading at $65,602.
Bitcoin’s price is up 3.79% over the past 30 days. Source: CoinMarketCap
Emperor suggests that the consolidation period allows traders to look for buying opportunities when the price dips below $66,000.
“Best bet right now is to be ready to buy the levels on dips you feel comfortable with and accumulate till September,” Emperor suggested to their 394,300 X followers.
But Bitcoiners haven’t been selling much
However, CryptoQuant contributor Axel Adler noted that Bitcoin holders have not been selling recently, which could boost the asset's price.
“The latest on-chain data shows a substantial decrease in the number of deposit addresses for Bitcoin across all exchanges, reaching a low of 25,000,” CryptoQuant contributor Axel Adler wrote in a July 23 analyst note.
Adler explained that the “decreased willingness” to sell Bitcoin could reduce its supply, and if demand keeps rising, it might drive the price up.
“The reduction in deposit addresses to 25,000 is a critical signal that may indicate a shift in the strategy of holding Bitcoin among investors,” Adler added.
Bitcoiners appear to be holding despite concerns Mt. Gox creditors could sell off their Bitcoin once they receive it.
Over $9.4 billion in Bitcoin is owed to about 127,000 Mt. Gox creditors. Some observers have been concerned that some creditors will want to take profits after waiting for more than 10 years to recover their funds.
However, CryptoQuant co-founder Ki Young Ju noted that despite distributions having begun, there hasn’t been activity indicating sell pressure yet.
“There has been no significant spike in hourly spot trading volume dominance or BTC outflows on Kraken since then,” Ju wrote in a July 23 X post.
“We need to wait for the Asian time zone, but it’s a positive sign so far,” he added.
Source: Cointelergraph
