Bitcoin has returned to the $20,000 area after experiencing rejection. The cryptocurrency has been displaying some strength during today’s trading session despite a spike in the U.S. dollar which signals danger for risk-on assets.
At the time of writing, BTC’s price trades at $20,300 with a 2.2% profit in the last 24 hours. Data from Material Indicators (MI) an increase in buying pressure from Bitcoin whales with bid orders of over $1 million (brown in the chart below).
Large investors have been accumulating BTC over the past week as the cryptocurrency moved below its current levels. BTC Whales could have been preparing for bullish continuation. At the time of writing, every investor’s class except retail is jumping into BTC’s price action.
— Material Indicators (@MI_Algos)
The cryptocurrency needs to break above $20,500 and continue above $22,000 to clear out any potential short-term downside risk.
Material Indicators records over $20 million in asks order for BTC’s price at around $20,500 until $22,000 alone. There is little resistance above those levels until $24,000 which stands as the next major area of resistance.
On the possibility that large investors were accumulating BTC expecting a larger move to the upside, MI wrote:
The FireCharts heat map and CVD both show that the purple class of whales which have historically had the most influence over BTC price have been trending up since the dump to $17.5k on May 18th. Too early to validate this as accumulation phase. Time will tell.
The key behind the current price action could be the U.S. dollar. The currency aggressively moved to the upside, to levels last seen in 2003, and could be about to retest previous lows.
As seen below, this could send the DXY Index to the 105 area or to its June range below 100, if these levels fail. Thus, providing some more room for BTC’s price to reclaim higher levels.
DXY Index (U.S. Dollar) sees some losses after a breakout on the daily chart. Source: Tradingview
Bitcoin Indicators Suggest Bullish Continuation
Quantum Economics analyst Jan Wüstenfeld indicated that BTC’s Reserve Risk dropped to 0.001, a metric used to measure long-term holders’ conviction. The last time Bitcoin saw a Reserve Risk this low was in 2015 before it began a persistent uptrend.
Currently, there are macroeconomics factors that could hurdle BTC’s price reclaim of previous highs. However, the current area could be a major accumulation zone for the coming months and a good place to apply a Dollar Cost Average (DCA) strategy. Wüstenfeld :
Bitcoin reserve risk has fallen below the green box. The last and only other time this happened was in August 2015. One thing is sure, this cycle is genuinely different to other cycles due to the macro conditions, and we are partially seeing that as well in the indicators.
A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.
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