The weekend trading session passed with out incident. Prices have moved from resistance to support and back again, without ever threatening to break the status quo. The bulls will be hopeful that this period of consolidation is building a solid base, giving those who wish to sell Bitcoin plenty of time to make the decision in a stable environment. Once the selling is over, they can resume the march north, unhindered.
With miner outflows remaining constant, our gaze turns to what is without question, a strange looking chart.
The number of addresses with a balance of 10 Bitcoin or greater has been rapidly declining since Christmas.
The number of addresses with 100 Bitcoin and 1000 Bitcoin or more remains stable to positive. This raises the question, why are these wallets disappearing? It could be as simple as hodlers splitting wallets into smaller sizes as the value of those wallets increases.
Prudent management of risk? Perhaps. The total number of wallets with 1 or more Bitcoin has been steady, with growth seen as the market rallied, and without much adjustment during the recent decline and retracement back to $40,000.
The longer the market holds above $35,000, the greater the chance the fireworks start again and momentum takes hold, but for now, we wait. Range trading at these levels is oddly great for those who are long Bitcoin, and great for those who want to sell some holdings and take some profits.
Everyone is expecting something to happen, Nobody is expecting Bitcoin to remain at $35,000 for the next few weeks.
Personally, I think it would be a great outcome.
Bitcoin spent the weekend trading session moving sideways. A move higher towards $38,180 was short-lived as prices rotated back to test support at $34,378 before settling mid-range around $35,600.
Today, the attempt to push higher also ran out of steam, with the bulls unable to reach the $38,180 level. The low from the weekend is now a clear marker: Should prices drop below our support level of $34,378, we will likely see a quick move down to $32,300.
On the upside, a move back through $38,180 will re-ignite the appetite of the bulls and see Bitcoin push on to regain a $40,000 handle. New all-time highs seem a way off, and a continued failure to trade above $38,180 will build pressure and ultimately see prices test support levels.
It looks like crypto isn’t correlated to traditional markets, at least not during this past session.
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