TL;DR
- Bitcoin is back above $30,000
- Unmoved Bitcoin supply continues to set new records denoting long-term hodling
- EMA signals a moderate level of support above $30K.
- Major indicators have a predominantly positive outlook
Today’s CryptoGurru Bitcoin Daily Analysis discusses Bitcoin supply metrics, technical analysis and the Bitcoin Days Destroyed (BDD) to evaluate its daily perfomance. Bitcoin market capitalization stands at $590B while the 24-hour trading volume is up by 3.45% to $13 Billion
Bitcoin Daily Analysis
Bitcoin broke past $28K last month. However, the price remained flat for weeks without any significant movements. Thereby resulting in short-term and medium-term accumulation by hodlers. It is this steady accumulation and a buying trend that pushed the price past the psychology resistance at $30K.
The recent increase in institutional interest following a Bitcoin-ETF submission by Blackrock has also added to the positive sentiment across the cryptocurrency market. This and the short-term accumulation trend is ensuring BTC continues to float above $30K.
In this article, we analyze today’s valuable on-chain trends, technicals and sentiments across the Bitcoin market.
Onchain
BTC Unmoved supply continues to set new records
Bitcoin investors seem reluctant to sell their holdings as unmoved supply volumes continue to increase and mark new records.
The record that long-term hodlers are setting includes Bitcoin supply that has remained untouched for the last 12 months. You can notice how the above Glassnode chart visualized this evaluation.
‘Unmoved supply’ as an on-chain metric has some downsides in regard to blockchain technology and the direction of a cryptocurrency’s price. Many argue that unmoved supply negates the properties of a decentralized financial system such as BTC. If people are not using Bitcoin, it loses that sense of financial freedom and decentralization. However, this can’t be the case because experts and a section of financial advisors have regarded Bitcoin as a store of value. Just like Gold.
According to a recent evaluation by Morgan Stanley of the S&P 500, U.S. corporates should anticipate an earning recession of -16% in 2023. Historically, periods like this have resulted in corporates and individuals resorting to inflation hedges such as gold and Bitcoin. This might explain in part the holding trend and the recent accumulation phase.
Apart from the unmoved supply, other key data points that denote long-term holding and accumulation include low Bitcoin Days Destroyed (BDD), whole coin addresses holding 1 or more BTC, high address dormancy, low exchange withdrawals and Coin Days Accumulaed for tracking the length of time that coins have remained unmoved.
Bitcoin Days Destroyed or BDD
BDD denotes the number of BTC transactions by the number of days they’ve been idle so as to analyse whether there has been any movement for previously dormant coins.
A high BDD equates to long-term hodlers selling their Bitcoins, while a low BDD shows hodlers are not selling their positions.
The chart above indicates the current BDD at 21.6K is relatively low compared to a year ago (5.8 million). As discussed above, this is an indication of less selling, increasing accumulation and long-term holding.
Technicals
Bitcoin’s price rose to $31K 2-months ago on April 14, 2023. However, the strong bull run was shortlived and the price dropped to $25,000 a month later, on June 15, 2023.
However, the $25,000 price level signalled a bottom and support at the same time. Thereby resulting in a strong upward rally of 15% that has seen the top coin close last week above $30,000.
The 20-day Exponential Moving Average (EMA) is currently at 30,497, indicating a moderate level of support. However, the top candlestick at 30,600 suggests resistance near that level.
The current price of Bitcoin is 30,348, slightly below the 20-day EMA, which may indicate a short-term bearish sentiment.
Major indicators show 14 Buy signals, 8 Neutral signals, and 4 Sell signals, suggesting a somewhat positive outlook overall.
When considering moving averages, there are 13 Buy signals, 1 Neutral signal, and 1 Sell signal, indicating a predominantly bullish sentiment among these indicators.
Oscillators present 1 Buy signal, 7 Neutral signals, and 3 Sell signals, suggesting a mixed sentiment with a slight bearish bias.
The RSI (Relative Strength Index) shows that the blue and yellow lines have touched 49, indicating a potential reversal point. This could suggest a neutral stance or a possible shift in momentum.
The MACD (Moving Average Convergence Divergence) displays the yellow line at 44 and the blue line at -35, both slanting downwards. Additionally, the negative short red bars on the MACD indicate a bearish momentum.
Bitcoin daily analysis conclusion
In summary, the technical analysis suggests a mixed sentiment for Bitcoin. While some indicators and moving averages indicate a bullish sentiment, the MACD and RSI indicate a more bearish stance. Traders and investors may want to monitor the price closely for potential support and resistance levels so as to consider the overall market conditions before making any trading decisions. Remember this is not investment advice but a hawk’s eye into what is happening across Bitcoin markets today.
Mubashir Ahmed is a multifaceted market analyst with extensive knowledge of the blockchain industry. He is proficient in market analysis and blockchain technology, having had experience with numerous projects in the space. He has a deep understanding of the Cryptocurrency industry, its trends, and how to best approach investing in it.
