Tether (USDT) Sharks & Whales Rapidly Accumulate, Why This Is Bullish For Bitcoin

On-chain data shows that Tether (USDT) sharks and whales have been rapidly growing their holdings since Bitcoin’s volatility started. Tether Sharks & Whales Grow Holdings As USDT Exchange Supply Plunges According to data from the on-chain analytics firm Santiment, these large Tether holders are now carrying a total of $16 billion worth of the stablecoin. The relevant indicator here is the “USDT Supply Distribution,” which tells us how the Tether supply is distributed among the various holder groups in the market currently. Investors or addresses are divided into these holder groups based on the total number of coins that they are holding right now. In the context of the current discussion, the key “shark” and “whale” cohorts are of interest, the combined coin range of which can be defined as $100,000-$10 million. Naturally, this holder group would include all addresses on the blockchain that are carrying at least $100,000 and at most $10 million worth of USDT in their balances. Now, here is a chart that shows the trend in the Tether Supply Distribution specifically for the sharks and whales over the last six months: The value of the metric seems to have sharply gone up in recent days | Source: Santiment on Twitter As displayed in the above graph, the Tether addresses holding between $100,000-$10 million have seen their combined supply shoot up recently. Interestingly, this rise has coincided with Bitcoin observing some high volatility due to Binance being sued by the SEC over alleged fraud. Generally, investors use stablecoins like USDT whenever they want to exit volatile coins like BTC. Thus, investors exchanging their assets for stables can be a sign of selling. It’s possible that the latest rise in the supply of sharks and whales has come because of these humongous holders ditching cryptocurrencies like Bitcoin in these uncertain times. Related Reading: Bitcoin Bearish Signal: Dormant 1,433 BTC Moves After 10+ Years However, usually, whenever holders opt for stablecoins instead of exiting through fiat or other means, it means that they are possibly looking to eventually return back into the volatile markets. When such investors finally feel that the prices are right to step back into the other coins, they shift their USDT into their desired asset, thus providing buying pressure on its price. Because of this reason, the stablecoin supply may be looked at as the available buying power for assets like Bitcoin. As the sharks and whales have loaded up on Tether and have taken their supply to a new all-time high of $16 billion, the potential dry powder for BTC has also gone up. It’s unknown when these humongous holders may finally shift back into the cryptocurrency, but when they do, it’s probable that its price would feel a bullish boost. Related Reading: Bitcoin Bollinger Bands Herald Higher Volatility, What’s Next For BTC? The data for the exchange supply (that is, the amount sitting in exchange wallets) of Tether is also shown as rising in the chart. It looks like this metric has gone up while the sharks and whales have been buying, implying that the coins exiting from these platforms are being picked up by these cohorts. BTC Price At the time of writing, Bitcoin is trading around $26,600, down 2% in the last week. Looks like the value of the asset has been moving sideways recently | Source: BTCUSD on TradingView Featured image from iStock.com, charts from TradingView.com, Santiment.net

Bitcoin Price Defies Gravity But Here Is Why It Could Decline Again

Bitcoin price is consolidating above the $26,000 support. BTC could start another decline if it stays below $27,400 for a long time. Bitcoin is struggling to gain pace for a move above the $27,400 resistance. The price is trading near $26,500 and the 100 hourly Simple moving average. There was a break above a declining channel with resistance near $26,420 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could decline again if there is a move below the $26,000 support zone. Bitcoin Price Faces Resistance Bitcoin price remained stable above the $26,000 level. BTC traded as low as $26,139 and recently started an upside correction. It was able to climb above the $26,250 level. There was a move above the 23.6% Fib retracement level of the downward move from the $27,387 swing high to the $26,139 low. Besides, there was a break above a declining channel with resistance near $26,420 on the hourly chart of the BTC/USD pair. Bitcoin price is now trading near $26,500 and the 100 hourly Simple moving average. It seems to be facing resistance near the $26,750 level. It is close to the 50% Fib retracement level of the downward move from the $27,387 swing high to the $26,139 low. A clear move above the $26,750 resistance might start a decent increase. The next major resistance is near the $27,000 level. A close above $27,000 might send the price further higher. Source: BTCUSD on TradingView.com The next key resistance is near the $27,400 level. A clear move above the $27,400 resistance might call for a move toward the $27,500 resistance. Any more gains above the $27,500 resistance zone might send the price toward the $28,500 resistance zone. Fresh Decline in BTC? If Bitcoin’s price fails to clear the $27,000 resistance, it could continue to move down. another decline. Immediate support on the downside is near the $26,140 level. The next major support is near the $25,850 level, below which the price might accelerate lower. In the stated case, the price could drop toward the $25,400 support in the near term. Technical indicators: Hourly MACD – The MACD is now gaining pace in the bearish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is near the 50 level. Major Support Levels – $26,140, followed by $25,840. Major Resistance Levels – $26,750, $27,000, and $27,400.

Bitcoin Forms Bullish Butterfly Pattern, Targets $32,000

Bitcoin (BTC), the largest cryptocurrency in the market, is currently trading sideways after showing signs of recovery in the wake of the Securities and Exchange Commission (SEC) lawsuits against Binance and Coinbase.  Although BTC managed to briefly recover the $27,000 level on Tuesday, it has failed to consolidate above it and is now stuck in a narrow range between $26,300 and $26,600 over the last 24 hours. The question on everyone’s mind now is whether Bitcoin will be able to regain its bullish momentum or if it will test its 200-day Moving Average (MA) at $25,200 once again. Bitcoin Pattern Points To Further Bullish Momentum Bitcoin traders and investors have reason to be optimistic, as the cryptocurrency appears to be forming a bullish butterfly pattern. According to technical analysis expert Mags, this harmonic reversal pattern is a strong indication of further potential upward movement for Bitcoin. Related Reading: UK Financial Conduct Authority Clamps Down on Crypto Marketing The bullish butterfly pattern is a type of harmonic reversal pattern that is often used by traders to identify potential trend changes in the markets. It is characterized by a series of price movements that form the shape of a butterfly, with a distinct “M” pattern followed by a smaller “W” pattern. The pattern is considered bullish because it suggests that the price of the asset is likely to reverse its previous downward trend and begin moving upward.   In Bitcoin’s case, the bullish butterfly pattern is signaling a potential target of around $32,500. This projection is based on the historical price movements of Bitcoin, as well as the shape and structure of the butterfly pattern itself. While no pattern is foolproof, the bullish momentum of Bitcoin in recent months lends further support to this target. However, Bitcoin faces a potential challenge ahead, as it struggles to surpass its nearest resistance level at $27,500 and consolidate above it. If BTC fails to break through this price point, it may be vulnerable to retesting its 200-day Moving Average.  This key support level is crucial for BTC’s short-term bullish momentum, and failure to hold above it could lead to further price drops. In such a scenario, the $24,000 and $23,000 marks may become the next trading range for BTC. Currently, the bulls’ threshold in the short term is the 200-day MA, which will need to hold if BTC is to maintain its upward trend. Short-Term BTC Liquidations Favor The Bulls Recent data provided by ‘The King Fisher’ indicates that most Bitcoin liquidations are skewed to the upside, signaling possible upside movements in the near term for BTC. As seen in the chart above, the majority of Bitcoin positions in the past few days have been short positions, with 87% of traders betting on a price decrease, compared to only 12% who are bullish on an upward movement.  However, this situation may not favor BTC bears in the long run, as institutional investors historically take advantage of high levels of liquidations, which could lead to what is known as a “short squeeze,” to further fuel a movement in the opposite direction. This dynamic could potentially fuel the bullish momentum that Bitcoin needs to break through its nearest resistance and regain the $30,000 level that was lost in April. Related Reading: FUD Storm: Top 5 Market Losers In Heightened Uncertainty At the time of writing, Bitcoin has a trading value of $26,600, representing a modest gain of 0.8% over the past 24 hours. Bitcoin’s market capitalization currently stands at $516 billion. Featured image from iStock, chart from TradingView.com 

Stablecoin Market Cap Decreases, But Whales Remain Unfazed: Santiment

According to data from leading crypto analytics firm Santiment, a distinct trend has unfolded in the stablecoin sphere. Even as stablecoins designed to maintain parity with a reserve asset like the US dollar, continue to hold their $1 peg, the combined market capitalization of the top five stablecoins – Tether (USDT), USD Coin (USDC), Binance USD (BUSD), Dai (DAI), and TrueUSD (TUSD) – has been experiencing a consistent decrease. Santiment reports earlier today that this downtrend began about 15 months ago, following a peak in March 2022. According to Santiment, Stablecoin market capitalization serves as a reliable indicator of the overall health of the crypto market. An upswing in the market cap signifies an increased buying power to purchase Bitcoin or altcoins in the future, often hinting at a potential market recovery. Conversely, a declining market cap could indicate that Bitcoin and altcoins are being liquidated, suggesting that large holders have been banking profits. Related Reading: Sharks & Whales Accumulate Stablecoins, Why This Could Be Bullish For Bitcoin Sharks And Whales Remain Unshaken Among the stablecoin ecosystems, large holders, colloquially known as ‘whales’ or ‘sharks,’ represent an interesting variable. These entities, which typically hold between $100,000 and $10 million in assets, play a crucial role in market dynamics. Despite the decreasing market cap, Santiment’s analysis reveals that these whales are far from unnerved. Specifically, the analytics firm reports that sharks and whales holding Tether, USD Coin, and Dai currently command over 40%, 37%, and just under 40% of the respective supplies. These holdings are the highest they’ve been since November 2021 or February 2023, suggesting that these whales are merely holding their wealth in stablecoin form, biding their time for an opportune moment to jump back into other more volatile assets. Steady Accumulation Amid Dormant Stablecoin Movements While the collective stablecoin market cap has been dropping, Santiment notes a steady accumulation of assets among whales. This pattern lacks any sudden major moves, which might otherwise signify a potential market bottom in a declining environment. The recent weeks have also seen minimal movement among dormant stablecoins, which could have suggested major buys of Bitcoin or altcoins. Although USD Coin has shown some promising dormant movement at the end of May, the activity falls short of the dormant stablecoins surge witnessed in mid-March, which ignited a notable bull rally. Meanwhile, according to data from DeFillama, the total stablecoin market capitalization currently stands above $120 billion, down by nearly 1% in the past 7 days. Notably, out of all the stablecoins, Tether’s USDT holds the most dominance at 64.57%. Related Reading: Bitcoin (BTC) Dominance Trend Shifts Alongside Stablecoin Flows: Glassnode The stablecoin currently has a market capitalization above $80 billion while Circle’s USDC Coin ranks second in the stablecoin market with a market cap of $28.7 billion. It is worth noting that as the stablecoin market has decreased steadily, larger crypto assets such as Bitcoin and Ethereum may be benefitting from this metric. Over the past 24 hours, both Bitcoin and Ethereum have shown an uptick up by nearly 1% respectively. This uptrend comes despite the regulatory scrutiny in crypto which has recently affected the world’s largest crypto exchanges, Binance and Coinbase. Featured image from Unsplash, Chart from TradingView

Bitcoin Bearish Signal: Dormant 1,433 BTC Moves After 10+ Years

On-chain data shows a large amount of Bitcoin older than 10 years has suddenly moved today, a sign that could be bearish for the price. Bitcoin Dormant From More Than 10 Years Ago Has Abruptly Moved As pointed out by an analyst in a CryptoQuant post, this movement of dormant coins may be a sign of selling. The relevant indicator here is the “Spent Output Age Bands” (SOAB), which tracks the movements that the different age bands are making on the blockchain right now. The “age bands” here refer to groups of coins divided based on the total amount of time that they have been sitting still on the network for. In the context of the current discussion, the 10+ years age band is of interest, which is a cohort that includes all coins that haven’t moved from a single address in more than 10 years. The SOAB metric, when applied for this particular age band, would naturally tell us about the number of coins that investors belonging to this group are transferring at the moment. Related Reading: Bitcoin Contrarians Win As Rebound Occurs Against Crowd Expectations: Santiment Now, here is a chart that shows the trend in the Bitcoin SOAB for the 10+ years age band over the past couple of days: The value of the metric seems to have been quite high in recent hours | Source: CryptoQuant As shown in the above graph, the Bitcoin SOAB for this specific group has registered a large spike during the past day. In total, this surge in the metric has corresponded to around 1,433 BTC moving across wallets on the network. The general cohort for all investors that have been holding their coins since more than 155 days ago is called the “long-term holder (LTH) group.” Statistically, the longer an investor holds onto their coins, the less likely they become to sell at any point. Due to this reason, the LTHs are considered the resolute hands of the market. As the movement in question is coming from an investor who had been holding for more than 10+ years, the holder would have been one of the oldest ones among even these LTHs. Related Reading: Bitcoin Realized Loss Remains Low Despite Volatility, What Does This Mean? Such old supply, however, is usually considered to have been lost due to wallet seed phrases becoming inaccessible. This means that there is a big chance that the wallet activation today may have come because of a user rediscovering a previously lost wallet. While movements from the LTHs are usually a bad sign for the market, as they show that even the diamond hands may have lost their belief in Bitcoin, this latest transaction wouldn’t be reflective of the general sentiment, considering the special circumstances around it if it’s truly coming from a lost address that has now been recovered. Nonetheless, the transfer is still a probable sign that the coins are being moved around for selling-related purposes, so it’s possible that the asset may face some bearish impact from the move. BTC Price At the time of writing, Bitcoin is trading around $26,400, down 2% in the last week. Looks like BTC has been consolidating sideways | Source: BTCUSD on TradingView Featured image from Hans-Jurgen Mager on Unsplash.com, charts from TradingView.com, CryptoQuant.com

Bitcoin Bollinger Bands Herald Higher Volatility, What’s Next For BTC?

The Bitcoin price has shown a strong reaction after the lawsuits filed by the US Securities and Exchange Commission (SEC) against Binance and Coinbase, which may have surprised many. Generally, rising prices on negative news are a strong indication that the sell side is losing steam and a bottom is near. In the case of the Bitcoin price, however, there are still some anxieties hovering over the market at the moment that could mean another, possibly final, drop to the downside. For example, it is still not clear whether the U.S. Department of Justice (DOJ) will also take legal action against Binance and what impact this will have on Binance’s international business. Bullish Arguments Are Growing For Bitcoin Nevertheless, the bullish signals are mounting. As Glassnode co-founders Jan Happel and Yann Allemann write in their latest analysis, Bitcoin’s Bollinger bands pretty much reflect the current state. On the 1-day chart, BTC price remains within the accumulation zone, between the lower band and the 20-day moving average. Related Reading: Bitcoin Is Reportedly Trading At a $2k Premium on Binance.US “Which suggests that this is still a good entry point,” the co-founders of the leading on-chain analysis service say. At the same time, with reference to the chart below, the analysts warn that traders should be aware of widening bands that could herald impending higher volatility that could lead to abrupt moves. Looking at Bitcoin’s open interest, Allemann and Happel state that despite the strong reaction to the bad news, there is no clear direction for now: We believe that the price will continue to consolidate alongside open interest until we approach the FOMC and the market begins to position for the expected output. Remarkably, next week’s Fed meeting – on June 13-14 – will be the first in years without a clear consensus on the rate decision. Since the Fed started raising rates, there has been a clear consensus at every meeting. According to the CME FedWatch tool, futures show a 30% chance that rates will be raised and a 70% chance that they will not. The lack of clarity is also likely to lead to more volatility in the BTC price ahead of the decision. Related Reading: Bitcoin Retests Moving Average That Marked All Major Market Bottoms BTC recently retested the 200-week moving average (MA) at $25,306, but supply liquidity was somewhat thin here. In addition, if price goes down again, a retest of the 50-month MA at $25,898 would be very interesting, where liquidity and sentiment seem to be stronger. It is worth noting that BTC has already formed a double bottom at the 50-month MA. A triple bottom would be bullish. On the other hand, a loss of the 200-month MA would open the way to bearadise. In this respect, a few very important days await BTC in the coming week(s). A defense of the aforementioned price levels is of utmost importance. If defended, a journey to bull paradise could be next, but bulls need to turn the tables on the lower time frames. Featured image from iStock, chart from TradingView.com