- The Bitcoin whale holdings have currently dropped to a 29-month low at levels last seen in June 2020.
- The Bitcoin chart technical setup hints at a mid-term rally as BTC gives a weekly close above $18,600.
The world’s largest cryptocurrency Bitcoin (BTC) has recently come under selling pressure with major uncertainties in the global macro environment. Currently, the BTC price is hovering around $19,000 levels amid the ongoing fight between the bears and the bulls.
As it turns out, the Bitcoin holdings of the whales have been on a continuous downside over the last 11 months. On-chain data provider Santiment explains:
The amount of #Bitcoin held by whales has been dropping for 11 months now. As fears of #inflation and a world #recession continue, addresses holding 100 to 10k $BTC have lowered their percentage of supply held of #crypto‘s top asset to 29-month lows.
For now, it remains absolutely unclear as to in which direction Bitcoin will be heading. However, it is likely to follow the course of U.S. equities moving ahead. In the past, Bitcoin has shown greater correlations with Nasdaq 100 and the S&P 500. If we take a look at the technical setup, Bitcoin can potentially climb up to $21,000 on the upside. On the downside, it can slip further in the range of $14,000-$16,000.
20500-21000, 🔨, 14k-16k https://t.co/gEAlm4c83a pic.twitter.com/s2p18lUiHH
— il Capo Of Crypto (@CryptoCapo_) September 26, 2022
Popular Bitcoin trader SB Investments added: Bitcoin “looks bearish with stocks looking to break support as well. But on the other side, this is what everyone expects. Purely based on TA this looks not good at all & looks like it wants to make new lows. A monthly close in 5 days will decide all”.
Bitcoin’s social dominance jumps
While Bitcoin comes under selling pressure, so has the broader cryptocurrency market. As we know, the altcoin space has been facing greater selling pressure. As a result, the social interest in Bitcoin has shot up once again over the last weekend.
As data provider Santiment reports: “A spike in #Bitcoin interest on social platforms came this weekend. Among #crypto‘s top 100 assets, $BTC is the topic in 26%+ of discussions for the first time since mid-July. Our backtesting shows 20%+ dedicated to Bitcoin is a positive for the sector”.
Also, as per IcomeSharks, a mid-term rally for Bitcoin is on the table. A weekly close above $18,800 could mean that a short-term bottom has been formed. Commenting on the technical chart formation, IncomeSharks said: “Elevator down, stairs up. Keep on building double bottoms and new supports, #MidtermRally remains on the table. Break this structure, remove these targets, and find a new bottom”.
#Bitcoin – Elevator down, stairs up. Keep on building double bottoms and new supports, #MidtermRally remains on the table. Break this structure, remove these targets, and find a new bottom. pic.twitter.com/0KF6QE2uPf
— IncomeSharks (@IncomeSharks) September 26, 2022
Amid the global macro setup, the volatility in the Bitcoin price is likely to continue further. It will be interesting to see if Bitcoin can hold up to the June low of $17,500.
