Bitcoin Price Retracement and On-Chain Data
After a recent bounce, the Bitcoin price has retraced and moved closer to $26,000. However, on-chain data provides some optimism to investors.
- Bitcoin supply at exchanges has dropped to a 6-year low.
- Only 5.8% of the total Bitcoin supply is currently held on exchanges.
- Significant whale transactions involving Bitcoin have been averaging around 57.4K per week.
- Decreasing exchange reserves suggest investors are holding onto their assets.
- Bitcoin whales have accumulated over $300 million worth of Bitcoin since last week’s market crash.
Bitcoin’s Technical Weakness and Regulatory Pressure
Bitcoin continues to show weakness on technical charts, dropping below the 200-day moving average. Immediate support stands at $25,200-$24,800, with a potential further fall to $20,500.
All eyes are on the Fed’s Jackson Hole meeting, where Jerome Powell will provide insight into the interest rate hike cycle.
US regulatory action on crypto firms has negatively affected market sentiment, with Bitstamp discontinuing Ether staking for US customers.
The cryptocurrency market may face ongoing pressure until there is a clear regulatory framework.
Hot Take
Despite the retracement in Bitcoin’s price and regulatory pressure, on-chain data presents some optimism for investors. Decreasing exchange reserves and whale accumulation suggest potential future price increases. However, technical weakness and regulatory uncertainty continue to affect market sentiment. The outcome of the Fed’s meeting and the establishment of a regulatory framework will significantly impact the future direction of the cryptocurrency market.
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