The leading crypto, Bitcoin, continued to face selling momentum. The bellwether digital token has experienced enormous outflows/liquidations. Surprisingly, BTC has managed to steady beyond the $22,000 value area. Well, primarily due to whales maintaining undeterred HODLing performance, plus dip-buying amid discounted prices.
Whaling-In
BTC whales (dominant buyers) have resorted to a holding spree (despite the ongoing market conditions). CoinSignal365, an analyst, shared this development on July 24. Two cohorts (over 1K and more than 10K BTC) noted a swift surge in their holding pattern.
Though Bitcoin maintained deteriorated prices, BTC whales with over 10K BTC accumulated (dip-buying). Also, addresses with more than 1K BTC (despite some sideways turns until May) had increased. The development could mean this cohort purchases more to join the 10K category or trimmed their holdings.
Nevertheless, the 10K group noted a more rapid growth, meaning whale count increased recently. Moreover, the minor categories printed a similar picture. For example, addresses with more than 0.01+ hit an ATH at 10,53,548. Such whale accumulations might trigger a positive price outcome for Bitcoin.
Arm in Arm
While publishing this blog, Bitcoin enjoyed a minimal run-up to beyond $22.7K. Sentiment improved as the asset’s demand noted an uptick. Two crucial indicators/aspects might support this case.
First and foremost, Bitcoin’s transaction fees remained elevated since the Terra-LUNA crisis, indicating block space’s surged demand. Higher costs where the seven-day moving average surpasses the 180-day moving average have historically signaled market recovery.
Finally, Bitcoin’s Lightning network capacity continues to target new highs in public channels, despite current bear market headwinds. The Lightning network channel has its capacity at 4,290 BTC, representing a 34.6% increase since the market peak of November.
Remember, the Lightning network is a layer2 payment platform layered on Bitcoin. It aims to allow quicker transactions, and experts proposed it as a BTC scalability solution.
Nevertheless, the crypto market remains weak and susceptible to plunges. Some analysts trust digital tokens will dip before launching steady upsides. It remains crucial to witness what the coming sessions will exhibit. What are your thoughts? Should we prepare for downs or ups? You can comment in the section below.
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