Key Takeaways:
- Bitcoin price continued consolidating above $30,000.
- On-chain data suggests BTC hodlers are accumulating the token.
NEW DELHI (CoinChapter.com) — Bitcoin (BTC) price continued to consolidate above $30,000 on July 12 after bears pushed the token below $31,000 on July 4.
Meanwhile, BTC hodlers continued to accumulate, with BTC whales adding nearly 90,000 BTC tokens to their wallets over the past month, crypto trader Ali noted on Twitter.
On-chain data analysis platform Glassnode also noted the accumulation trend among Bitcoin holders.
Glassnode highlighted that BTC hodlers were accumulating the token at a rate of 27,100 BTC per month. Moreover, it seems accumulation remained the prevalent trend in 2023, at times going above 40,000 BTC per month.
Furthermore, Bitcoin’s balance on exchanges dipped to a five-year low on July 12.
The declining balance on exchanges is another indicator of investors’ hodling mentality. Investors are likely transferring their BTC holdings to private wallets, which suggests market participants remained optimistic about the token’s future prospects.
Another on-chain blockchain data analysis platform, Santiment, noted that Bitcoin and Ethereum’s Net Realized Profit/Loss (NRPL) vs. price metric was hinting at a bullish divergence.
When NRPL vs. price goes negative, there is a higher likelihood future positive price movement.
Santiment noted
However, Erik Anderson, Senior Research Analyst at Global X, told CoinChapter that the rate of change in the number of addresses holding 1,000 BTC or more has not had a significant enough change “to suggest a convincing and sustainable breakout is imminent.“
From an accumulation perspective, the most significant cohorts growing their exposure to bitcoin are addresses that hold between 0.01 to 100 BTC. This group of addresses tends to be more agnostic to market cycles than those who hold larger bitcoin balances, opting for steady growth of exposure to the asset.
Erik Anderson told CoinChapter
BTC Price Continues To Struggle Against $31,000
Meanwhile, BTC price continued to struggle against the $31,000 price level, though the token has been repeatedly needled above since June 23. But, recent Bitcoin price action has showcased a tussle between the bulls and bears, indicated by the long upper and lower wicks on the daily candles.
On July 12, Bitcoin price spiked a meager 1.5% to form a daily high near $30,960 before retreating. Should the bears gain control, BTC price might face a drop to the 20-day EMA (red) support near $30,100.
Moreover, failure of immediate support level could invite panic selling and shorts. As a result, Bitcoin price might test the 50-day EMA (purple) support near $29,000 before recovering.
On the other hand, bulls would need to break above resistance near $31,300 decisively to infuse confidence in BTC’s price rally. Furthermore, breaking and consolidating above the immediate resistance could help Bitcoin price challenge the resistance near $32,600 before retreating.
The RSI for BTC remained neutral, with a value of 62.25 on the daily charts.
