Bitcoin is trading sideways at the time of writing, absorbing last week’s sell-off. While there are some optimists, the candlestick pattern on the daily chart is pointing to weakness.
This outlook, at least from a technical perspective, remains valid as long as prices continue to trend below the $60,000 round number and the liquidation level at around $66,000.
Binance Buys Bitcoin Dip
Amid the recovery, one analyst pointed out some interesting on-chain data, Note When prices fell last week, some unnamed exchanges were taking advantage of the decline. Now it turns out that Binance, the world’s largest exchange by number of clients, has been actively accumulating cryptocurrencies.
CryptoQuant data shows that Binance increased its reserves by 41,000 BTC during the last bearish wave when the price corrected from $72,000. Buying on dips is strategic, given the exchange’s commitment, especially for users looking to convert other tokens into BTC immediately.
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During this time, Ki Young Joo also male “Permanent holders,” entities that tend to hold the coins and not transfer them, have been piling up. These addresses, excluding Bitcoin ETF issuers, exchanges like Binance and Coinbase, or mining companies, have added 85,000 BTC in the past month. During that time, Bitcoin ETF issuers have reduced their holdings by 16,000 BTC.
While some entities scrambled to get out, others saw an opportunity to double down, piggybacking on every dip. Their intervention helped stabilize prices, improving sentiment that had been torn apart by last week’s drop to $53,500.
German government dumps more bitcoin
Even as the Diamond Hands buy the dip, the German government isn’t stopping; given Arkham Intelligence DataToday, on July 11, they moved another 3,250 BTC, in addition to the 5,627 BTC sent earlier, to several market makers and exchanges, including Bitstamp.
Their decision to sell is putting further pressure on the currency, slowing the uptrend. Even with continued outflows from the German government, a survey by Coingecko showed Offers Most participants, especially investors, are optimistic.
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Meanwhile, traders and speculators had mixed feelings. While 39% of traders were optimistic and expected prices to recover, another 33.5% of survey participants were pessimistic. Most speculators, or 42.4% of survey participants, were pessimistic and expected prices to continue falling.
Featured image of DALLE, chart from TradingView
