Bitcoin (BTC) has experienced a notable price recovery, rising by over 4% in recent trading sessions. As of press time, Bitcoin’s price climbed to $60, 600 during the Asian session, marking a second consecutive day of gains. This rise has brought Bitcoin back to the doorstep of a crucial resistance area, but the cryptocurrency is still within a broad sideways trading range between $57,000 and $62,000, which has been in place for the last 10 days.
BTC/USD Source: CoinMarketCap
On-Chain Data Indicates Increased Accumulation
Recent data shows that Bitcoin addresses containing between 100 to 1,000 BTC have been increasing their cryptocurrency holdings. Going by the sentiment data, these wallets have accumulated about 94,700 BTC in the past six weeks, which reflects a 2.44% increment in holdings.
This accumulation has been happening despite the recent price fluctuations in Bitcoin, suggesting there is growing confidence among mid-sized holders.
However, US spot Bitcoin ETFs experienced small inflows with $62.10 million injected on Monday. While still very small relative to the overall assets of $54.25 billion for the 11 US spot Bitcoin ETFs, the inflows are gradually increasing, data shows over the last three days.
Technical Analysis: BTC Towards Important Levels
The price movement of Bitcoin at present brings it closer towards some important technical levels. It is now trading close to the 61.8% Fibonacci retracement level drawn from the high registered on July 29 to the low on August 5, around $62,066. Noteworthy, this level, if broken above, with the price also rising above the 100-day Exponential Moving Average, will help Bitcoin stay on this upward path.
Source: X
For now, the resistance at which Bitcoin can reconquer $62,066 may have the cryptocurrency targeting the August 2 high of $65,596, thereby implying a 6% gain toward the weekly resistance at $69,648. However, if this level is not going to be reclaimed, then Bitcoin would be looking at retracing toward the support area around $57,115, with a potential extension to $49,917 in case bearish pressure starts to ramp up.
The RSI trades above the 50 level at the moment, and this means that there is some shift in the trend towards positive territory; meanwhile, the AO is still trading below the zero level, which means the bearish pressure still exists but is not that strong.
Market Sentiment and Potential Risks
Market sentiment, however, is still somewhat unclear even after the recent price appreciation. Coinglass long-to-short ratio stands at 1.11, signifying a slightly bullish market sentiment. The latest readings from the Bitcoin Inter-exchange Flow Pulse (IFP) index, a gauge of flows on spot and derivative exchanges by CryptoQuant, are above the 90-day simple moving average, indicating that bulls are back in the game.
Block trading, which has been dormant for days, is back on fire, with significant growth in block trades traded today, with a notional value of over $500 million.
3,643BTC block call options traded, accounting for 24% of the day’s total trading, 2,084BTC block put options traded,… pic.twitter.com/Ks7JmZ1MMr— Greeks.live (@GreeksLive) August 20, 2024
It has been the amount of Bitcoin options trading over the last few days signaling a pickup in bearish sentiment. Data from Greeks. Live shows 3,643 block calls on Bitcoin options traded, which is 24% of the daily volume; similarly, 2,084 block put options traded, which is 14%. This means some traders are already positioning for the sell-off, even though the market is currently in an uptick.
