Markets
Did they save the Bitcoin market?
Bitcoin is moving sideways at press time, absorbing last week’s selloff. While there are some bulls, the candlestick arrangement on the daily chart points to weakness.
This preview, at least from a technical standpoint, holds as long as prices remain below the $60,000 round number and the liquidation level is around $66,000.
Binance bought the Bitcoin dip
Amid the recovery, one analyst, pointing to interesting data in the chain, observed that when prices fell last week, some unidentified exchanges were carrying the dip. It is now emerging that Binance, the world’s largest exchange by number of customers, was actively accumulating.
Data from CryptoQuant shows that Binance increased its reserves by 41,000 BTC in the last bear run, when prices corrected from $72,000. Buying on dips is strategic considering the exchange’s obligation, especially for users looking to convert other tokens to BTC on the spot, instantly.
During this time, Ki Young Ju also observed that “permanent holders,” entities that tend to HODL and not move coins, have been accumulating. These addresses, excluding issuers of spot Bitcoin exchange-traded funds (ETFs), exchanges like Binance and Coinbase, or miners, have added 85,000 BTC in the past month. During that time, spot Bitcoin ETF issuers have decreased their holdings by 16,000 BTC.
While some entities were scrambling to get out, others saw this as an opportunity to double down, loading up on each pullback. Their involvement helped stabilize prices, improving the sentiment shattered after last week’s dump to as low as $53,500.
German government unloading more BTC
Even with the “diamond hands” buying the fall, the German government does not stop; looking at Arkham Intelligence data. Today, July 11, they moved another 3,250 BTC, in addition to the 5,627 previously sent, to various market makers and exchanges, including Bitstamp.
Their decision to sell is putting more pressure on the currency, slowing the bullish trend. Even amid sustained outflows from the German government, a survey by Coingecko show that most respondents, especially investors, are optimistic.
Meanwhile, traders and speculators have mixed feelings. While 39% of traders are bullish, expecting prices to recover, another 33.5% of those surveyed are bearish. The majority of speculators, or 42.4% of those surveyed, are bearish, expecting prices to continue falling.
Featured image by DALLE, chart by TradingView