Bitcoin has been slowing down on its bullish momentum over today’s trading session, but the crypto market continues to push to the upside. BTC’s price still records profits in the last 24 hours and 7 days with a 3% and 3.3% respectively.
| Bitcoin surpasses its real value again. Bottom finally in
The decline of the legacy market likely affected Bitcoin. For the past months, Bitcoin has displayed a high correlation with the S&P 500 and the Nasdaq 100.
The S&P 500 was seeing important gains since the start of July 2022 after a major bearish price action took it from around 4,800 to its current levels at around 3,800. In the past week, the index took a bearish turn which seems to be contributing to BTC’s price incapacity to break resistance at $22,000.
Positive developments have been occurring in the crypto market. The second crypto by market cap Ethereum has a date for its highly anticipated event, “The Merge”, investors have absorbed the selling pressure without BTC’s price losing its 2017 all-time high in high timeframes, there is far less leverage in the crypto market.
In addition, research firm Santiment records an increase in Bitcoin whales’ activity. As they appear to have accumulated Bitcoin at current levels, these large investors are triggering network activity. On today’s price action, Santiment stated the following while sharing the chart below:
The amount of bitcoin transactions worth over $1m surged to their highest point in more than a month just three hours ago. Today’s whale moves can be busy, so spikes like this one could often signal price shifts.
NewsBTC reports that BTC whales are more active since BTC fell to current levels. Over 10,000 BTC holders added 30,000 BTC to their accounts.
Bitcoin Network Activity Requires more Fuel
Mempool.Space data shows that there have been major rallies due to an increase in Bitcoin network activities. The transaction fees measure the cost of sending BTC transactions.
Although this metric has been trending to the negative since mid-2021, it started showing signs of recovery over the last month. Over the past month, Bitcoin transaction fees were on the rise. This could indicate that there is more network activity. It also suggests an increase in potential future appreciation.
Related Reading| Liquidations Cross $230 Million As Ethereum Barrels Past $1,400
But, activity in network is still very low for longer periods. Ali Martinez also provided additional information that showed a drop in the number new BTC addresses. The metric is at an eleven-month low, with a significant increase in BTC supplies to crypto exchanges. This can often translate into selling pressure. An analyst said:
In general, lower prices are associated with a decrease in the number and quality of addresses that have been created on a particular blockchain.
#BitcoinClose to 32,000| Nearly 32,000 $BTCThe assets, which are estimated to be worth $672million, were sent to the known #cryptoExchange wallets in the last four days pic.twitter.com/lXcKetuRLK
— Ali Martinez (@ali_charts) July 18, 2022
