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">
 <figcaption class="wp-caption-text">
 Bitcoin Price Analysis| Tradingview
 </figcaption>
</figure>
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

Table of Contents

Coingape News Media

Other articles published on Jul 6, 2024

Fast and Simple Bulk Token Transfers

PancakeSwap Revealed Airdrop of 2.45M ZK Tokens; Who’s Eligible?

Argentina Attracts Bitcoin Miners with Low Energy Costs and Tax Benefits

Next-Gen Cryptos: Altcoins Leading the Charge in Blockchain Innovation:

VeChain (VET) Token Experiences Slight Recovery Amid Market Correction

Uniswap – Whale sell-off sparks fear among UNI holders, but…

Join our free newsletter for daily crypto updates!