Bitcoin (BTC) Faces Another Strong Resistance at $35,000, Here’s The On-Chain Metrics

By Bhushan Akolkar
Published July 6, 2021 Updated July 6, 2021
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Bitcoin (BTC) Faces Another Strong Resistance at $35,000, Here’s The On-Chain Metrics

By Bhushan Akolkar
Published July 6, 2021 Updated July 6, 2021

Bitcoin (BTC) continues to face down pressure as the world’s largest cryptocurrency faced another rejection above $35,000 levels. On Sunday, July 4, BTC made a move all the way above $35,900 levels but could sustain only for a few hours.

Wiping out all its weekend gains, BTC is back under $34,000 as of now on Monday evening. Bitcoin has registered its second-worst quarterly performance in history after 2010, reports MarketWatch. After a solid rally earlier this year, BTC ended the second quarter of 2021 down 42%.

As it turns out, short-term investors have ended up booking major losses. At the same time, the long-term investors have been accumulating at dips. The on-chain data shows that BTC is showing a healthy trend with address activity picking up slowly.

Bitcoin On-Chain Metrics

As per data from Glassnode, Bitcoin’s (BTC) balance at OTC desks has been on a continuous decline. This suggests that big players have continued with their accumulation amid this recent price decline.

Courtesy: Glassnode

Bitcoin’s ‘millionaire tier’ whale addresses holding between 100 to 10K have kicked off major accumulation this month. These addresses have accumulated 60K BTC registering the highest daily spike in 2021. On-chain data provider Santiment notes that these whale addresses have added 100K BTC over the last six weeks and hold a combined 9.12 million coins in total.

Also, the recent drop from ~$36K to now under $34K comes with a very low exchange volume seen on the USA Independence weekend. The Bitcoin exchange inflow and outflow registered 2021 lows during this period. Another bullish indicator is that the Bitcoin supply at exchanges has dropped to its lowest since January 2021.

Courtesy: Santiment

With exchange supply dropping to a 6-month low, it suggests that there’s a reduced risk of major BTC selloffs at the exchanges. However, $30,000 will be the level to watch out for on the lower side. Any dip below it can possibly trigger a further slide to $25,000.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Bhushan Akolkar
767 Articles
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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