Bitcoin On-Chain Activity Grows; BTC/USD Pair Forms a Double Bottom
Last week, Bitcoin had some remarkable fundamental growth. This appears to have occurred as Bitcoin moved into the $7k zone.
The whales have likewise contributed to this fundamental growth, as it seems that they are accumulating coins heavily after the market crash in mid-March.
These factors seem to show that Bitcoin is currently having some remarkable fundamental strength and could also be pointing at an optimistic short-term outlook.
Recently, in Glassnode’s weekly report, it was revealed that Bitcoin recorded some remarkable fundamental growth last week, as observed in its transactional volume (increased by more than 23 percent) and increase in the number of active traders. This happened as the price of Bitcoin rose from lows of $6.7k to highs of $7.5k.
One of the reasons for the increased transaction volume is the whales’ accumulation. Data shows that the number of individuals with more than 1,000 BTC has increased remarkably since Bitcoin crashed to $3.8k on March 12.
Glassnode concluded that big players are looking forward an imminent rally in the near-term, and may be valid as there will be reduced inflation from the halving.
BTC/USD Pair Price Analysis
The BTC/USD pair moved beneath the $7.4k and $7.5k hurdle over the past few sessions. In recent times, the pair fell beneath $7.2k.
The pair was supported between $7,080 and $7.1k which later turned to a strong buy zone. It seems there is formation of a double bottom pattern close to $7.1k zone. The pair came up with a swing low close to $7,092 and it corrected over $7.3k.
The latest high was close to $7,360 and the pair is now retracing lower beneath $7.3k. It is currently visiting the $7,220 zone and the 100 hourly SMA.
The pair’s hourly chart shows that the buyers are encountering a powerful barrier close to $7.4k, and there is the formation of a key declining trend line with barrier close to $7,340.
Peradventure the double bottom pattern is real there could be a surge over the trend line barrier and $7.4k hurdle. The key barrier is close to $7.5k, over which the buyers could focus on $7.8k or $8k.
The first support is close to $7.2k zone while the main breakdown support is close to $7,080. The failure to secure $7,080 support zone poses a risk of a decline. The immediate support is close to $7k, under which the sellers could focus on testing $6.7k.