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Bitcoin Analysis Over the Past Week and Future Movement



Bitcoin analysis. Source: Wance Paleri / Unsplash

Bitcoin started last week weak after the release of US inflation numbers. The result was a cold shower on investors who expected a reduction in inflation and were faced with a contrary scenario.

In addition, the activation of The Merge on Ethereum, which had been moving the cryptocurrency markets, happened successfully and also activated the famous jargon “Buy the rumor and sell the news”. The hype before the event moved the market and helped push the price of ETH and BTC higher, however, after the event, sales pushed both BTC and ETH lower.

The bulls managed to hold the selling force and with that, BTC started last week above $20k – awaiting the release of the new Fed interest rate. As expected, the interest rate rose, due to inflation concerns and bearish sentiment took over the market again, pushing BTC back to the $18K level and, in the 7-day period, BTC faces a fall of 4.30%.

Now, all eyes are on the whales’ movement, as given on-chain reveal that around 620,000 Bitcoins were sent to exchanges this week, injecting billion-dollar liquidity into the market at a time when trading volumes are down due to macroeconomic concerns.

Data from Glassnode reveals that whales that accumulate bitcoin between 7 and 10 years are selling their BTC in an amount that was only observed this year when the collapse of the UST led to the bankruptcy of the Terra ecosystem (now Terra Classic) and made the crypto market lose. more than $1 trillion in value.

Graph of spent volume of bitcoin that were idle for 7-10 years.
Graph of spent volume of bitcoin that were idle for 7-10 years. Source: Glassnode

For this week, the trend is still sideways trading with two levels to watch out for: support in the $18k range and resistance between $20k and $21k.

On the support side, if it is lost, the bears have a high chance of succeeding in taking Bitcoin to $15K – which can act as a rebound effect: a drop to $15K should be followed by an immediate rally. to $16,500.

This $15,000 support is unlikely to be lost, given the buying force that has been successful throughout the year in maintaining the $18,000 level, which indicates strong buying force at lower levels.

On the resistance side, if it is broken, the bulls open the way for a retest at $23,000 and then at $25,000, a level that is also very difficult to break at the moment given that the macroeconomic scenario is coming. acting as an invisible hand controlling the chart at this point.

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