Bitcoin has struggled to make gains over the past month, with a brief foray of more than $ 50,000 proving its efficiency even as one of the major banks predicted that the price of bitcoin could soon double.
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The price of bitcoin reached $ 52,000 per bitcoin early last week before falling to less than $ 45,000, as a viral plan to boost the price of bitcoin. The crash wiped out about $ 300 billion from the combined $ 2.1 trillion bitcoin and cryptocurrency market.
Now, the data has revealed that bitcoin exchange reserves, the amount of bitcoins from Coinbase and Binance, have fallen to a lower level than in November last year, when the price of bitcoin began its huge rise that it reached $ 65,000 in April.
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The price of bitcoin has been on the water for the past month, but new data has revealed that the price could be … [+]
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Bitcoin exchange reserves have reached new multi-year lows this week, according to data from the analytical chain CryptoQuant, which means there is less supply of bitcoin that can be easily sold in the market. Low bitcoin exchange reserves occur when investors leave their holdings off the stock exchanges and are stored.
“Cryptographic markets have shifted to a limited environment since last week’s fall, between $ 43,000 and $ 47,000, without oxen or bears holding firm,” wrote Marcus Sotiriou, a trader in the brokerage. Global-based digital assets GlobalBlock, which wrote in a note but pointed to data showing that large bitcoin owners, known as whales, have increased their holdings “by about 44,000 bitcoins last week and 103,600 bitcoin the last three weeks “, describing the data as” bullish “.
On Monday, the business intelligence software company Microstrategy
MSTR
“This means we may see a flood of institutional bitcoin buying announcements over the next few weeks or months,” Sotiriou wrote, as “the remaining buyers of the 98,000 bitcoins [are] unknown “.
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The price of bitcoin has been trading sideways over the past month, but some market watchers think it could be … [+]
Coinbase
Meanwhile, technical analysis shows that the price of bitcoin is about to make the so-called golden cross, where the 50-day moving average exceeds the 200-day moving average. While this is not necessarily a bullish sign and may be a lagging indicator, some believe that a golden cross may support a new higher rise.
“The cryptocurrency market doesn’t seem over-sold to be unequivocally attractive for short- and medium-term purchases, but it does show signs of buyer interest,” Alex Kuptsikevch, a senior financial analyst at FxPro, wrote in comments sent by mail. electronic.
“Bitcoin has gained methodological support this month down from a simple 200-day moving average, which now exceeds $ 44,300. In early August, the rise of this curve began a 40% increase over the next five weeks “.