Bitcoin struggled to continue its uptrend on Wednesday due to reduced trading activities. Cryptocurrency data trackers reveal that trading volume dropped by almost 5%.
Nonetheless, it had a small spike in selling volume at the start of the session, resulting in a dip to $97,56. It met buyback that erased the losses. However, it failed to register any significant change.
The asset currently trades at $96,700. Down almost 3%, the apex coin is close to critical support: the 23% Fibonacci retracement level. Investors fear a further decline if the asset drops below this critical price level.
Several positive factors exist despite the growing threat to the highlighted mark. On Wednesday, Russia announced that local companies and businesses now use crypto assets like Bitcoin to facilitate cross-border payments. The news comes a few months after the Russian Federation said it is exploring ways to bypass sanctions.
Many analysts predict that these companies will spend and save in digital currency, which may spell another wave for the nation. The effects of these bullish fundamentals may unfold in the coming months.
Accumulation Resumes
Onchain data reveals aggressive buying from several trading platforms. Data from CryptoQuant shows a gradual decline in exchange Bitcoin reserves. Traders soaked up significant supply over the last 24 hours, with most buying pressure occurring earlier on Thursday. Reserves were reduced by 0.46% after investors dumped their bags the previous three days.
Exchange netflow dropped over 300% as traders pulled more assets into cold storage. The withdrawals come as the number of addresses in profit dropped by 5%.
Nonetheless, traders from several regions are yet to resume buying. US investors’ buying pressure is very weak as the Coinbase premium is negative. This premium, which holds a huge number of whales, reveals that this holding group is still bearish. The Korea Premium is negative due to a very weak buying sentiment in the area.
The same bearish trend is present in exchange-traded funds. They register notable outflows, resulting in a negative funds premium.
A CryptoQuant contributor noted the drop in Binance’s Bitcoin reserves. It dropped below 570,000 BTC for the first time since January.
The reserve dip shows that investors are moving their assets to cold storage as they await more price increases. A similar event happened early in 2024, and the apex had a massive rally a few months later.
However, data from Santiment shows that bulls may not be the trigger for the upcoming uptrend. It reveals a growth in Bitcoin crabs when the whales dump. The image above shows that the number of holders who held between 1 and 10 BTC is growing amidst the downtrend. The chart shows a consistent rise in these HODLers over the last three months.
Bitcoin is Billed for Breakout
Bitcoin prints yet another 4% red candle after on Thursday. It dropped to $95,600 a few minutes ago. The apex coin’s latest dip takes it closer to bollinger’s bands’ lower SMA. It briefly dipped below the mark on Monday but rebounded. It has since trended between the middle band at $99,500 and the lower band at $93k.
BTC may continue this trend until a breakout above $100k. It may rebound after testing the $93,000 support. An aggressive buyback may start, causing a massive surge.
It is worth noting that the asset currently trades close to the 23% Fib level. The bulls attempt buyback at this mark, resulting in halting further descent.
