The picture doesn’t look merry for the flagship crypto as the price of BTC has been steadily declining. Its best performance has been to trade sideways, if not higher, for a period of time. The price has fallen to $32,789, after failing to stay over the $34,000 mark in the last 24 hours.
Bitcoin did surge towards $34,676 but plunged right after. It breached the key support level at $34K and the next one at $33,900. The price hit the low at $32,675 and is now correcting. At the time of writing it is trading at $32,917.
The next key resistance levels are at $33,500 and $33650. As for support levels, BTC should hold above $32,500 and $32,200 if it slides below.
Analysts and Traders now believe Bitcoin is poised for a significant move, either higher than prior highs or lower than its yearly open. While some metrics hint at a recovery some hint at a further decline. Which way BTC swings is to be watched out for.
Bitcoin Whale Ratio
This ratio represents the total value of tokens in the top 10 transactions of all exchanges divided by the inflow into the exchanges. This ratio has seen a huge surge on Sunday.
As the Tweet implies, the indicator’s value has only been topped 3 prior times this year. And there has always been a drop in the price of Bitcoin quickly following those instances where the ratio spiked.
The rationale behind the indicator’s rise in value is that Whales are moving their tokens to exchanges for selling or exchanging. This dumping of tokens by whales historically results in plunging the price.
Bitcoin Hashrate Recovery
Glassnode’s week on-chain report stated that as a result of Chinese miners successfully transferring gear, around 29% of the lost hash power has been restored, while “previously obsolete hardware has been dusted off and given a fresh lease on life.”
The Miner Net Position Change indicator now reveals that miners are back in accumulation mode after nearly a month of selling, showing that “sell-side pressure from offline miners is more than offset by accumulation by operating miners.”
Also, the BTC exchange flow data, hints that over the last two weeks, more BTC has been removed from exchanges than deposited. This indicates that there is a decline in selling.
This can be seen as a bullish trend for BTC in the long run as holders are withdrawing BTC to put into long-term storage as the market waits for the next big move higher.