Bitcoin (BTC) 360 #15: 23rd July 2021
Hello everyone, I find you in this new installment of Bitcoin 360. Today, we have on-chain data useful for understanding the sentiments around Bitcoin, followed by technical analysis. I’ll leave you with the long-awaited weekend review. Have a nice read!
Distribution between Bitcoin whales
Let’s start as usual with on-chain analysis of Bitcoin. The one and only Willy Woo highlights the distribution of big holders, called whales
These graphs highlight the supply that whales (who have with more than 1,000 BTC) hold compared to smaller addresses. These addresses are becoming more distributed, and are less and less powerful – much to the benefit of the smaller whales, who are accumulating more and more.
This decrease in whales can also be explained by institutions, which have an ever-increasing supply and are now major players in the negotiation of this asset.
Derivatives on the rise
A final word on the supply held by exchanges and ETFs. What do we see? Exchanges remain predominant in the total supply of crypto. There is a slight decline that does not taint a clear bullish progression.
However, we can see that ETFs, which have had little presence until now, are taking up space and gaining ground to the detriment of these exchanges. They are going to have a crucial role in the years to come.
A nice rebound
Let’s start with the four-hourly: we are still in our good old range. Bitcoin is at the bottom of its daily range with characterised by lower and lower highs and lower and lower lows. The price has posted a V-recovery with a lot of volatility on this bottom.
Bitcoin is arriving at the top of its channel with liquidity above the last high wicks. I also note the imbalance structure which, like a futures gap, tends to be filled. So, this is an important level to keep in mind. The trend remains bearish, but the bottom formed may be similar to a real bottom, especially since the price dropped below 30k before starting to rise again.
Let’s expand our analysis with the hourly:
Open interest is falling with the price increasing. This indicates that we are seeing a healthy increase without much leverage. There was lots of buying when we dipped under $30k.
Graphically, we have a strong increase without a correction. We can see an ascending channel that holds for the moment. As I said before, the four-hourly indicates a high channel, so be careful if you want to buy on this level. Always test your analyses on different timeframes for the strongest analysis.
That’s all for me, feel free to react and give me your analysis on Twitter. Never invest more than you can afford to lose and FIND OUT. Happy trade and see you next Friday for a new article on CoinTribune! If you missed last week’s, make sure to catch up!
Passionate about technical analysis and technology, I have been diligently following cryptocurrencies since 2017. Beyond trading and investing, I try to democratise, in my own way, the ecosystem that will undoubtedly change our habits in the future!