Bitcoin Prepares for $7,500 as Next Stop while Exchanges’ BTC Balance Continue Surging
Earlier this week, bitcoin's price took a hit, falling from above $10,000 to hit below $8,450.
Currently, BTC/USD is trading at $8,650, up 1.29% in the past 24 hours while managing the daily trading volume of $735 million.
Interestingly, despite ongoing losses, Bitcoin exchange balances have doubled since Jan.1, 2018. With OKEx, Binance, Bitfinex, Huobi, Bittrex, Bitstamp, Kraken and Deribit all recording growth in BTC balance, noted analyst Ceteris Paribus.
There are two events that altered its trajectory, such as the crash of November 2018; when bitcoin prices fell from about $6,000 to $3,200 in Dec. and hit the bottom.
The second event was the start of the bull run in 2019. During this period, the New York Attorney General launched an investigation into Bitfinex and Tether’s $850 million cover-up.
“Regardless of price action, more and more is getting sent to exchanges,” Paribus observed.
If Bitcoin Heads South, Prepare for Another >10% Drop
Bitcoin took an almost 16% drop but is still up 18% in 2020 so far. This fall came amidst the coronavirus scare that has the stock market seeing the biggest weekly drop since the recession in 2008.
Yesterday, however, bitcoin futures on the regulated platform – CME – expired, which fully closed the $8,500 gap. Investors expect a bounce, but if the markets take one more southbound step, losing it its current level: trader Crypto Michael estimates that Bitcoin will keep heading down until $7,500-$7,700.
Analyst DonAlt is also expecting some crazy action because the world’s leading digital asset won’t keep on ranging.
My macro thesis has been that BTC is digesting the '15-'17 bull run by ranging for a while now.
I can't imagine that ranging to go on for much longer.
I'm expecting some wild price action going into the halving.
Once that's out of the way we'll finally get the next macro move. pic.twitter.com/Ti15X2P2yx
— DonAlt (@CryptoDonAlt) February 26, 2020
The “nasty” bearish candle Bitcoin has printed is now sitting on top of the 50 percent retrace of the 2019 bull market, along with the 50-week moving average.
Just like other commentators, analyst Magic sees “a continuation in selling pressure” if Bitcoin breaks below these levels. But, if Bitcoin finds support here, we could also see a nice rally.
While the analyst argues that there's “absolutely zero” evidence to support the completion of an inverted head and shoulder pattern leading BTC to the upside. If it does, the digital asset can climb towards $20,000, its previous all-time high.
— Hsaka (@HsakaTrades) February 29, 2020