On July 4, Bitcoin bulls fought to maintain the $31,000 level, taking advantage of the closure of the United States market to create potential volatility. BTC price attempted to solidify its overnight gains, reaching a peak near $31,400 before losing momentum and remaining within a narrow trading range.
While Bitcoin has not yet reached new yearly highs, market participants were bullish on lower timeframes based on recent behavior. Trading suite Decentrader suggested that Bitcoin was looking bullish across virtually all time frames according to its proprietary trading tools. Philip Swift, co-founder of Decentrader and creator of on-chain data resource LookIntoBitcoin, expressed optimism about the market, stating that it felt like it was getting ready to rally higher.
However, Michaël van de Poppe, founder and CEO of trading firm Eight, believed that rapid gains would only come after BTC/USD surpassed the $32,500 level to establish new highs. Other market narratives anticipate lower levels to reappear in the second half of 2023, with a popular target for the year’s highs being in the mid-$30,000 range.
On-chain data from analytics firm Glassnode showed ongoing accumulation among smaller entities in the Bitcoin investor spectrum. These “shrimp,” defined as wallets holding less than 1 BTC, are increasing their holdings by over 33,000 BTC per month on a rolling basis. Glassnode highlighted that this data was significant, with only a small percentage of trading days recording a larger monthly position change. The total coins held by the “Shrimp” class now amount to 1.33 million BTC.
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