Bitrabo Editorial
Bitcoin has been trading in a bullish pattern after recovering from last week’s dip, notably on July 15 when prices surged past the 20-day moving average.
Despite the positive outlook, some weaknesses are emerging. On July 23, prices retraced from over $67,500 to dip below the significant support level of $66,000.
If sellers intensify their selling pressure by the end of the trading day, reversing recent gains, it could slow down the upward momentum, challenging the optimism seen in the previous week.
Bitcoin Exchange Activity on the Rise: Impact on Market Sentiment
Bitcoin, while still resilient and close to its all-time highs, is being closely watched by analysts with a generally optimistic view. According to one analyst on X, exchange activity has been increasing steadily.
Recent data shows that the Average Exchange Volume Flow (AEVF), which tracks Bitcoin trading volume across platforms like Coinbase and Binance, has surged by 9% in the last few days.
This rise in exchange activity indicates a potential market recovery, but it needs to surpass the average annual volume threshold. The AEVF indicator should grow by another 11% to exceed 45%, a level observed during the previous bull run when Bitcoin peaked at $73,800.
Despite the sluggish uptrend, reports show that large investors, particularly those holding over 10,000 BTC, have been aggressively accumulating assets over the past week.
Their increased buying coincides with the market’s upward trend since July 15, breaking through key resistance levels, notably surpassing $62,500 and reaching $68,000 over the weekend.
New Bitcoin Whales Establish Firm Support at $64,000
Currently, the average buying price for new large investors, as highlighted by the analyst, stands at around $64,000. If prices remain above this level, it reinforces the bullish sentiment, preventing major holders from reconsidering their positions.
As market participants observe potential buying behaviors during price dips, it’s crucial to monitor how prices react at critical resistance levels.
Focusing on the daily chart, Bitcoin must fend off lower price levels below $66,000 and gather momentum to breach the $70,000 and $72,000 thresholds, which have historically formed key support or resistance zones.