Accumulate

Bull Flag

Bitcoin

Trillion

Bitcoin Price Analysis: The cryptocurrency market extended its correction trend for the first of July as <a href="https://coingape.com/blog/is-bitcoin-price-crash-far-from-over-here-is-the-untold-story/" rel="noopener noreferrer nofollow">Bitcoin</a> witnessed a massive outflow. Amid the liquidation of the fallen <a href="https://coingape.com/btc-price-slips-under-56000-as-mt-gox-wallet-transfers-2-7b-in-bitcoins/" rel="noopener noreferrer nofollow">Mt. Gox exchange</a>, the US and German governments, the BTC price fell to a 4-month low of $53,500 on Friday. While the weekends are mostly stable for digital assets, the aforementioned entities could offload more BTC this month, creating a concern of further downfall.
Also Read: <a href="https://coingape.com/bitcoin-selling-pressure-also-fueled-by-9301-btc-from-2-whales/" rel="noopener noreferrer nofollow">Bitcoin Selling Pressure Also Fueled By 9,301 BTC From 2 Whales</a>
<h2 id="b-bitcoin-price-analysis-large-btc-holders-accumulate-amidst-volatility-b">Bitcoin Price Analysis: Large BTC Holders Accumulate Amidst Volatility</h2>
<figure style="width: 100%" class="wp-caption alignnone"><img decoding="async" src="https://s3.tradingview.com/snapshots/r/Rr1y4aiP.png" alt="BITSTAMP:BTCUSD Chart " width="1946" height="893">
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 Bitcoin Price Analysis| Tradingview
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Analyzing the daily charts shows that Bitcoin showcased an aggressive downfall since June start and its price reverted to $72000, The bearish turnaround initiative led by BTC miners’ capitulation and <a href="https://coingape.com/spot-bitcoin-etfs-see-143-million-inflows-on-friday-institutions-buying-the-dips/" rel="noopener noreferrer nofollow">ETFs outflow</a> is now carried by heavy liquidation from Mt. Gox exchange, the German Government, and the US Government.&nbsp;
Thus, Bitcoin recorded a monthly loss of 25.5% to hit $53500, while the market cap plunged to a low of $1.06 Trillion on Friday. However, the supply pressure eased as the weekend approached and reverted the coin price to $56739.
Interestingly, the reversal formed precisely at the support trend of a bull flag. This continuation pattern has been driving the past 4-months’ consolidation in <a href="https://coingape.com/will-bitcoin-stabilize-after-summer-gazmararian-weighs-in/" rel="noopener noreferrer nofollow">BTC</a> between the two downsloping trendlines.&nbsp;
<blockquote>
 Until the lower trendline is intact, the pioneer cryptocurrency is prevented from a major correction, thus maintaining its market cap above $1 Trillion.
</blockquote>
Also Read: <a href="https://coingape.com/german-govt-moves-500-bitcoin-another-btc-dump-imminent/" rel="noopener noreferrer nofollow">Just-In: German Govt Moves 500 Bitcoin, Another BTC Dump Imminent?</a>
Moreover, recent analytics from Santiment shows that wallets holding over 10,000 Bitcoin have significantly benefited from the recent six-week volatility in the cryptocurrency market. These large holders, believed to be primarily exchange liquidity providers, have accumulated an additional 212,450 BTC during this period, now owning 1.05% of the total Bitcoin supply.
<blockquote class="twitter-tweet">
 <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f433.png" alt="🐳" class="wp-smiley" style="height: 1em; max-height: 1em;"> Wallets with 10K+ Bitcoin have been the extreme beneficiaries of the past 6 weeks of volatility. With these massive addresses speculated to be heavily comprised of exchange liquidity providers, they own 212,450 BTC more over this stretch, and 1.05% more of the entire supply. <a rel="noopener noreferrer nofollow" href="https://t.co/8Ob2OIJ2M2">pic.twitter.com/8Ob2OIJ2M2</a>
 — Santiment (@santimentfeed) <a rel="noopener noreferrer nofollow" href="https://twitter.com/santimentfeed/status/1809368159830568964?ref_src=twsrc%5Etfw">July 5, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
This surge in accumulation marks the highest level of holdings in nearly six years. The last time wallets with 10K+ BTC exceeded 3.19 million coins was in November 2018. The current trend indicates strong confidence among these large holders, which could be a bullish signal for the cryptocurrency’s future performance.
Furthermore, the ongoing consolidation is above the 23.6% Fibonacci retracement level indicating the broader trend remains bullish.
Thus if the flag pattern holds true, the <a href="https://coingape.com/price/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin price</a> could rebound 23% to rechallenge the flag resistance around $70000. A successful breakout from the overhead is crucial to reentering a bullish trend.
The aforementioned upswing will be invalidated if sellers breach the bottom support trendline.
<h2 id="b-technical-indicator-b">Technical Indicator&nbsp;</h2>
<ul>
 <li style="font-weight: 400;" aria-level="1">BB Indicator: The BTC price challenging the lower boundary of the BB indicator highlights the sellers are still aggressive towards this asset.</li>
 <li style="font-weight: 400;" aria-level="1">RSI: The <a href="https://coingape.com/glossary/rsi-relative-strength-index/" rel="noopener noreferrer nofollow">Relative strength index</a> below the oversold region (below 30%) after August 23’ could attract fresh buying pressure.</li>
</ul>
The post <a href="https://coingape.com/markets/bitcoin-price-analysis-flag-defends-1-trillion-market-cap-btc/" rel="noopener noreferrer nofollow">Bitcoin Price Analysis: How Bull Flag Defends $1 Trillion Market Cap for BTC</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Bitcoin Price Analysis: How Bull Flag Defends $1 Trillion Market Cap for BTC

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