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This Week in Bitcoin: BTC Dips, and More
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This Week in Bitcoin: BTC Dips, and More

Bitcoin finally hit a two-month high, crossing $41,000 after notching its longest streak in almost 8 years. Meanwhile, illiquid supply has hit record highs as BTC logged the biggest weekly price gain in the last three months.

The Fundamental Look

Bitcoin rallied past the $40,000 psychological level to reach its highest point since May following a 10-day winning streak, the longest in eight years for the world’s largest and oldest cryptocurrency.

BTC accumulation continues to accelerate among whales and retail traders, signaling the community’s confidence in the digital asset’s long-term bullish run. At the same time, BTC outflows from CEXs have climbed past previous highs after roughly 40,000 BTC was withdrawn over the week. Based on the recent events, crypto analysts suggest that a fourth bounce in Bitcoin may repeat BTC’s bullish runs of 2013 and 2017.

Following China’s mining exodus, other countries like the U.S. and Kazakhstan are quickly taking over the mining market, pushing the BTC hashing rate back above 100 exahashes per second (EH/s), a significant rise after bottoming at 83 EH/s since May.

In mining news, Marathon Digital has announced the purchase of additional Bitcoin mining hardware from Bitmain. Per their official press release, the U.S.-based mining company has purchased 30,000 Antminer S19j Pro at a reported cost of $120.7 million. With this new addition, Marathon Digital’s total mining rigs go over 133,000, delivering an approximate hash rate of 13.3 EH/s.

In adoption news, investment funds from Grayscale Bitcoin Trust (GBTC) have been added to Wealthfront’s suite of investments, according to the company which currently has $25 billion in assets under management. Despite increasing government crackdowns, cryptocurrency adoption in Nigeria continues to explode, with P2P trading volume of BTC reaching its second-strongest week.

Additionally, Quiznos customers will soon be able to pay for their meals in BTC using the Bakkt App. A recent collaboration between Quiznos and Bakkt enables customers to pay in BTC at several Quiznos locations across the Denver-area. To accelerate mainstream adoption of BTC, Binance is also bringing BTC payments to Shopify, allowing users to pay BTC across Alchemy Pay’s partner merchant stores and outlets, including leading brands like Shopify and Arcadier. 

Whales Of The Week

  • July 30: 15,822.225 BTC sent from multiple addresses to unknown wallet
  • July 31: 15,791.450 BTC sent from multiple addresses to unknown wallet
  • August 1: 15,807.548 BTC sent from multiple addresses to unknown wallet
  • August 2: 15,866.666 BTC sent from multiple addresses to unknown wallet
  • August 3: 21,992.091 BTC sent between Xapo wallets
  • August 4: 16,355.700 BTC sent from multiple addresses to unknown wallet
  • August 5: 11,203.456 BTC moved between unknown wallet addresses

The Technical Take

Although Bitcoin managed to break out of the prevailing longer-term downtrend after its astonishing winning streak, the seminal cryptocurrency is now undergoing a technical correction and retracing earlier gains from the week. To that effect, BTCUSD has underperformed peers, slipping -1.82% compared to the 12.47% climb in ETHUSD and 7.47% gain in ADAUSD over the last seven days.

After moving higher in an upward trending equidistant channel, the BTCUSD pair has since fallen below the lower channel line, corresponding with a potential bearish head and shoulders pattern coming to fruition. After breaking through support at $37,750, the next level of support sits around $36,400. A technical 60% correction as deep as $34,600 is possible, given the approximate $13,000 move from around $29,500 to $42,500 while keeping the near-term uptrend intact.

Going forward, the significant technical levels to watch on the downside include support at $38,650 and $34,950, which corresponds with the 50-day moving average. On the upside, resistance sits squarely at $39,900, right below the $40,000 psychological level. Secondary resistance sits at 41,400, with any break higher potentially testing $42,900 and the 200-day moving average.

​​Disclosure: Reuben Jackson held no position in any of the stocks mentioned in this article at the time of publication.

Disclaimer: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities.

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