Hello everyone, I see you in a new issue of ”Bitcoin at 360 °”. In summary, on-chain analyzes on Bitcoin wallets before continuing with our traditional technical analysis. Make yourself comfortable in your chair and I wish you happy reading!
A zoom on the “little hodleur” of Bitcoin
Wallets holding less than one Bitcoin are considered Small Carrier (PP) wallets. They represent 5.25% of the supply in circulation.
Thanks to this graph, we can see that PPs are prone to a constant accumulation since 2018. A state of mind similar to miners who prefer to keep their Bitcoins than to sell them, despite the dumps of the last few weeks.
Unlike 2017, no oversized FOMO brand. A seine accumulation without drift.
The Binance exchange highlights the evolution of Bitcoin’s dominance since the start of the year.
Bitcoin represented more than 70% of the total market. Ethereum in second position with 11%. Now Bitcoin only represents 41% when ETH has doubled. A flow came out of Bitcoin to take advantage of the largest rise offered on altcoins such as Ethereum or Doge. To know now if this movement of Bitcoin will continue in this direction or if the flow found in altcoins will end up in Bitcoin. To watch closely for its money management.
A word of advice, you have to follow the flows and the big ones to benefit from ample movements.
What does technical analysis teach us
Like every week, the long-term market trend is bullish on Bitcoin as long as we hold the $ 42k.
This corresponds to the last big low point in the market. This level also corresponds to a structure imbalance, it is a strong bullish or bearish candle that leaves almost no time or other to buy or sell on this level. It acts similarly to a gap. If there is a deeper dip there is hope to look for the latest consolidation of $ 30,000 but that would strongly challenge the trend.
Are we currently seeing a dip?
I am used to relying on candles which help a lot in technical analysis. At each slight dip, a strong bullish candle appears after a doji type candle. Here we do not yet have this daily candle that would help buyers.
A tidy in 4 hours
I told you about the 4-hour OB on the $ 60k which could be damaging. This is what happened and caused the price to deviate from the top of its range down to between $ 58,000 and $ 53,000. We broke this range down and returned to the old consolidation level of $ 49,000.
Now we would like a strong bullish candle which would herald a potential end of the short term downtrend and regain the range. Be careful all the same, the volumes are strong during the dump and encourage movement, but during a slight increase the volumes become low and do not accompany the movement.
My personal point of view is that the price will return to the levels of $ 55k before plunging again due to a lack of volumes on lower levels including the $ 40k. Of course, to be taken with a grain of salt.
Hope you enjoyed this week’s review. Most importantly, never invest more than what you can afford to lose and LEARN MORE. Good trade and see you next Friday for a new article on CoinTribune ! If you missed last week’s analysis, there she is !
Passionate about technical analysis and technology, I have been diligently following cryptocurrencies since 2017.
Beyond trading and investing, I try to democratize, in my own way, the ecosystem that will undoubtedly change our habits of tomorrow!
The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.