Bitcoin took a breath today as prices consolidated around the $35,000 level. Yesterday, volumes across futures exchanges set a new record, with over 4.5 million Bitcoin futures contracts changing hands.
The underlying fundamentals of Bitcoin and its network have never been stronger. Which, given the tongue-in-cheek reporting that Bitcoin has now entered a bear market due to it's 20% decline from its all-time high, goes to prove that price swings do not always tell the whole story.
Short-term leveraged traders with long positions have been forced to the sidelines following large liquidations across exchanges - these bulls will be back soon enough.
So let's have a look at what the blockchain data shows.
The number of active addresses: ATH
Mining difficulty: ATH
The hash rate: ATH
Illiquid supply: ATH
The number of wallets with a non-zero balance: ATH
The number of whales: ATH
Conclusion: Now is probably not the time to panic. Bitcoin's pull back from its ATH is not a surprise, and picking the point at which it will happen will always be an impossible task.
The question remains the same: Have we already seen the highest price Bitcoin will ever trade?
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Bitcoin has settled today, with a trading range that looked at resistance at $35,868 and support at $32,300. Neither level was attacked with vigor, leaving prices fluctuating around mid-range.
A break higher through $35,868 will see Bitcoin trade back to the $38,180 level, with resistance overhead at $40,000. On the downside, a move back below $32,300 will likely see more volatility enter the market as the bears push hard for a sub $30,000 print. $28,000 should act as firm floor on prices if $29,980 gives way.
It looks like crypto isn’t correlated to traditional markets, at least not during this past session.
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