Bitcoin Wells Replica Classic Bull Market Moves As BTC Price Eyes $72k
Bitcoin (BTC) sought higher levels at the final Wall Street open of the week as bulls refused to succumb to market nerves.
BTC price sets resistance test.
Data from Cointelegraph Markets Pro and TradingView followed the resurgent BTC price action as it crossed $71,000.
Flash Volatility An ongoing legal battle between US exchange Coinbase and its regulator the Securities and Exchange Commission (SEC) has sent Bitcoin below the $69,000 key.
However, the weakness didn't last long as buyers moved in to fuel efforts to snap up liquidity at all-time highs.
The famous day trader Skew warned that false price behavior can be caused by distorted liquidity movements. Among them was new bid support between $70,200 and $70,600, all of which were later removed from the Binance Order Book.
With all-time highs still acting as a clear price ceiling, sellers should take a hit, considering that affiliate trader Daan Crypto Trades is likely to take a price discovery Bitcoin.
“I always think the highs and lows of $80Ks should follow after a while,” he said, summing up followers on X (formerly Twitter).
The accompanying chart showed recent trend line support in the form of 200-time simple and exponential moving averages (MAs) on the 4-hour time frames.
Bitcoin whales are sold to “TradFi”.
Analyzing on-chain BTC flows, meanwhile, Ki Young Joo, CEO of on-chain analytics platform CryptoQuant, highlighted the change in ownership among the biggest Bitcoin hodlers.
Related: Bitcoin ‘sell-side liquidity crisis' sees BTC move for first time since 2010
In the current scenario, long-term investors with significant exposure – Bitcoin Wells – have been dumping coins, while new Well entities have been buying up the supply.
These institutions, Kee pointed out, were Bitcoin exchange-traded funds (ETFs) in the US, removing hundreds of billions of dollars worth of BTC from the market every day.
“Old whales are selling Bitcoin to new whales (TradFi), not retail investors,” he concluded.
“This can be clearly seen on the chain.”
A chart showed the effects of ownership changes on the chain as seen in both the 2017 and 2021 bull markets — all the way to all-time highs.
As Cointelegraph reports, Bitcoin's core demand has slowed in recent weeks despite hitting new all-time highs.
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