Key market indicators suggest that Bitcoin may enter a short-term bearish trend before it can break through the $70k resistance zone.
- Bitcoin mining difficulty reaches ATH. Bitcoin whales bought over 84,000 BTC in July.
Bitcoin [BTC] has been failing to make new highs but crypto investors are still bullish on BTC long-term.
VanEck CEO has predicted Bitcoin will reach half the market cap of gold, exceeding the $350,000 price point. Separately, Morgan Stanley advisors will pitch BTC ETFs by BlackRock and Fidelity starting 7th August.
These, combined with Trump’s Bitcoin debt idea, signals a powerful future for crypto. However, the asset could be about to face a potential downtrend.
Bitcoin mining difficulty hits new high
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It was reported that Bitcoin mining difficulty and US money supply have hit new all-time highs necessitating more computational power, potentially affecting profitability.
This is potentially because of the increased activities on the Bitcoin blockchain. With $900 trillion of global wealth and BTC’s market cap at $1.25 trillion, this is a significant allocation.
Source: BitcoinMagazine PRO
A recent $3 trillion loss in stocks due to recession fears highlights Bitcoin’s resilience. While traditional assets plummet, BTC remains a focal point.
Many investors underestimate cryptocurrency’s potential, making now an opportune time to consider BTC in a diversified portfolio for the long-term gains.
Bitcoin whales anticipate rally as BTC investment increases
In July, Bitcoin whales bought over 84,000 BTC, the largest purchase since October 2014, amounting to $5.4 billion.
While many investors were offloading their holdings, these large holders, owning at least 0.1% of total Bitcoin’s supply, were accumulating according to IntoTheBlock.
This significant increase highlights the strategic moves of whales during market fluctuations, reinforcing their influence and confidence in Bitcoin’s long-term potential.
Source: TradingView
BTC potential downtrend
A look at Bitcoin’s MACD shows a lower high in 2024 compared to 2021, trending lower and pushing down swiftly while price is trading higher but in a potential reversal zone.
This divergence suggests a potential bearish trend is about to begin with a confirmation from price action that is making successive equal highs.
Bitcoin’s new ATH in 2024 may have resulted from monetary inflation rather than true value growth.
The MACD’s bearish trend is a signal for the short-term traders that BTC may soon change direction targeting the critical support range of $28k – $37k.
Source: TradingView
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