Markets
Did They Save the Bitcoin Market?
At press time, Bitcoin is trading sideways, absorbing the sell-off of the past week. While there are some optimists, the candlestick pattern on the daily chart indicates weakness.
This preview, at least from a technical point of view, will remain valid as long as prices remain below the round figure of $60,000 and the liquidation level remains around $66,000.
Binance bought the Bitcoin dip
In the midst of the recovery, an analyst, highlighting the interesting on-chain data, observed that when prices dropped last week, some unnamed exchanges were charging the drop. Now it’s emerging that Binance, the world’s largest exchange by customer base, was actively accumulating.
CryptoQuant data shows that Binance increased its holdings by 41,000 BTC during the latest bear market as prices corrected from $72,000. Buying on dips is strategic given the exchange’s obligation, especially for users looking to convert other tokens into BTC on the fly and instantly.
During this period, Ki Young Ju also noticed that “permanent holders,” entities that tend to HODL and not move coins, have accumulated. These addresses, excluding spot Bitcoin exchange-traded fund (ETF) issuers, exchanges like Binance and Coinbase, or miners, have added 85,000 BTC over the past month. During this period, spot Bitcoin ETF issuers have reduced their holdings by 16,000 BTC.
While some entities scrambled to exit, others saw this as an opportunity to double down, charging on every retracement. Their involvement helped stabilize prices, improving sentiment that had been torn apart after last week’s plunge to $53,500.
German government dumps more BTC
Even as the “Diamond Hands” Buy the Drop, the German Government Does Not Stop; Watching Arkham Intelligence dataToday, July 11, they moved another 3,250 BTC, in addition to the 5,627 they sent previously, to multiple market makers and exchanges, including Bitstamp.
Their decision to sell is increasing pressure on the currency, slowing the bullish trend. Even amid German government-backed outflows, a Coingecko survey Shows that most of the interviewees, especially the investors, are optimistic.
Meanwhile, traders and speculators have mixed opinions. While 39% of traders are optimistic, expecting prices to recover, another 33.5% of respondents are bearish. Most speculators, or 42.4% of respondents, are bearish, expecting prices to continue to fall.
Feature image from DALLE, chart from TradingView