Glassnode: Bitcoin $110,000 Target Holds, Breaking These Key Levels Crucial To Avoid Crash
04 Julho 2024 - 9:00PM
NEWSBTC
Bitcoin (BTC) experienced a significant drop, reaching as low as
$56,700 on Thursday. This price level has not been seen since May
1st, as Bitcoin faces several challenges, including US political
uncertainties and the ongoing sell-off of BTC seized by the German
government. These factors have contributed to a nearly 20% price
correction for Bitcoin, causing concern among investors. Unraveling
The Bitcoin Price Drop According to a recent Bloomberg report,
investors are contemplating potential scenarios if President Joe
Biden decides to withdraw his US reelection bid. One possibility is
the emergence of a stronger Democratic contender who may pose
challenges to Republican Donald Trump, whose agenda favors the
crypto industry. Richard Galvin, co-founder of hedge fund
Digital Asset Capital Management, highlights the likelihood of a
“stronger Democratic candidate” who might not support
cryptocurrencies as a factor influencing Bitcoin’s weakness in the
short term. Related Reading: Solana Meme Coins Outperform
Ethereum 800% YTD – Top Winners Revealed In addition, the overhang
from the collapsed Mt. Gox Bitcoin exchange case, which plans to
begin refunding, affected customers of the alleged hack suffered
nearly 10 years ago, and the US and German government sell-off are
contributing to the current weakness in the Bitcoin market. Traders
are closely monitoring the risk of Bitcoin disposals by both the US
and German governments, who possess seized BTC. Recent data from
Arkham Intelligence reveals that a wallet associated with the
German state transferred approximately $75 million worth of BTC to
exchanges on Thursday, adding to a series of similar
transfers. Meanwhile, administrators of the failed Mt. Gox
exchange are gradually returning a substantial amount of Bitcoin to
creditors, leaving speculators uncertain about the potential impact
of the $8 billion haul on the market. Miners’ Response And Market
Impact On the other hand, Bitcoin miners responsible for the
computational power that supports the Bitcoin blockchain continue
to face the financial consequences of the Halving event, which
reduces the number of new tokens they receive as a reward. As
a response, some miners are selling a portion of their token
inventory, adding to the selling pressure on Bitcoin. This ongoing
battle with selling pressure from miners is affecting Bitcoin’s
price performance, as highlighted by Noelle Acheson, author of the
Crypto Is Macro Now newsletter. However, Acheson notes that the
sentiment in the crypto market can quickly change, especially if
weaker US economic data instigates expectations of looser monetary
policies from the Federal Reserve. Additionally, the
potential approval of US exchange-traded funds (ETFs) to invest in
Ethereum could uplift the overall market mood. Furthermore, the
interpretation of US political developments may shift over
time. Matt Hougan, Chief Investment Officer at Bitwise,
suggests that potential changes at the top of the Democratic ticket
will likely settle in an improved position for cryptocurrencies. He
emphasizes that Washington’s attitude towards digital assets has
changed positively in the past year. Glassnode Predicts Retest Of
Previous All-Time Highs Despite the negative price performance and
uncertainty surrounding BTC’s price, Jan Happel and Yan Allemann,
founders of blockchain analytics platform Glassnode, maintain their
target for Bitcoin, stating that BTC is expected to reach the
$110,000 area before the market peak. Notably, Allemann and Happel
see the current consolidation as a retest of the previous all-time
high area. However, for this to happen, Bitcoin will need to cross
key levels at $64,000 and later $70,000, which will require further
market development and price action. Related Reading: Solana Eases
Gains: Can SOL Bulls Safeguard the $132 Support? According to Julio
Moreno, the Metcalfe Price Valuation offers insights into the
potential support level for Bitcoin’s price. Moreno suggests that
$56,000 should be a crucial support level for Bitcoin based on this
valuation. Moreno concluded that if the Bitcoin price fails
to hold this key $56,000 level, the correction could potentially
deepen, leading to more severe consequences for the market. BTC has
regained the $57,300 level; however, the cryptocurrency has been
down 5% in the past 24 hours, with no signs of near-term bullish
catalysts to climb above $60,000. Featured image from DALL-E,
chart from TradingView.com
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