FOMC

bullish

Bitcoin

when

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Bitcoin’s recent fall from the $69k-$70k resistance zone has resulted in a bearish market structure.</li> 
 <li>Despite this, the decrease in long-term holder active sales and increase in whale holdings could signal market confidence.</li> 
</ul>  
<p>Bitcoin [BTC] experienced a swift decline from its resistance zone between $69k-$70k. The weekly timeframe showed a bearish structure, further exacerbated by the FOMC meeting which dispelled bullish hopes for a Fed rate cut in September.</p> 
<p>The emergence of the Sahm Rule, indicating potential economic weakness and a possible recession, triggered panic in the markets and a further drop in BTC.</p> 
<h2 id="long-term-holder-sell-pressure-decreases">Long-term Holder Sell Pressure Decreases</h2> 
<p>The $60k region is a significant support zone, but there’s no guarantee that it will hold. On-chain metrics were closely examined to understand the sentiment of long-term holders.</p> 
<p>Crypto-analyst Axel Adler noted a reduction in active sales by long-term holders. Compared to early June, the selling pressure from this group was described as “minimal”.</p> 
<p>The long-term supply also saw a significant decrease. This suggested intense profit-taking activity when BTC was trading around the $68k-$70k levels, indicating a lack of confidence in a breakout past $70k.</p> 
<p>However, this could also be seen as positive news since it implies that selling pressure might be exhausted.</p> 
<h2 id="whale-cohort-s-behavior">Whale Cohort’s Behavior</h2> 
<p>Interestingly, the percentage of wallets holding between 100k-1M BTC increased. The last time such a significant increase was observed was in May 2023, when Bitcoin began to rise above the $26k resistance.</p> 
<p>Despite this encouraging accumulation by large whales, other whale cohorts have been selling. The 1k-100k division saw a sharp drop in their holdings over the past two weeks, indicating selling pressure from these whales.</p> 
<p>Bearish sentiment over the past few months was also evident in the adjusted SOPR, which showed that coins were sold at a profit on average.</p> 
<p>Despite the drop in long-term holder active sales and the accumulation from larger whales, Bitcoin might struggle to recover in August due to the prevailing bearish sentiment in the market.</p>

Can Bitcoin’s Whales Prevent a Drop Below $60K for BTC?

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CoinEagle.com

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