The world’s largest cryptocurrency, Bitcoin (BTC) has surged 2% over the past 24 hours, with BTC priced at $26,332 and a market cap of $512 billion. This is quite a breather as the asset has continued to face massive selling pressure in recent weeks.
However, this price surge could become a sell-the-rise opportunity as suggested by the surge in FX deposits. On-chain data provider Santiment reported that bitcoin exchange supply hit a two-week high. According to reports, over 5,000 bitcoins worth a whopping $128.5 million were sent to exchanges in the last 24 hours.
Bitcoin saw a modest 2% price gain, hitting $26.3k again after a week. It is important to monitor BTC supply on exchanges, which is up 3.1% over the past two weeks. Traders appear to be driven by a desire to make modest profits, Santiment added.
Courtesy: Santiment
However, after the recent rebound, $26,000 remains an important level for investors to keep an eye on. So far, BTC price has formed a double-top pattern that suggests more trouble is ahead. However, if BTC price manages to stay above $26,000, the double top theory will remain invalid.
Possibility of BTC price correction
On the upside, the $25,500 level remains a key support level for bitcoin. Bitcoin is making the exact textbook move it is making a few months before the halving. Historically, August and September in the year leading up to the halving were big problems for Bitcoin.
Noted crypto analyst Stack Hodler states, “We are nearing the end of a significant debt cycle and governments will continue to devalue currencies to meet their nominal debt obligations.”
Finite supply assets that are immune to confiscation and devaluation will excel over the long run. For example, consider #Bitcoin which is up +342% since the start of the Covid fiat surge.
On the contrary, assets prone to confiscation and devaluation will fare poorly. Taking sovereign debt as an example, TLT is down -43% since the Covid outbreak, the analyst added.
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