Bitcoin is in a bullish pattern following last week’s post-spring rally, which was seen on July 15 when prices broke above the 20-day moving average.
Even with this optimism, however, cracks are starting to form. Yesterday, July 23, prices pulled back, falling from over $67,500 to below the all-important support of $66,000.
If sellers double down on today’s close, reversing current gains, it would quickly ponderous the uptrend momentum, challenging last week’s bulls.
Bitcoin Stock Market Activity Rising: Do Bulls Matter?
While Bitcoin remains generally resilient and is within inches of all-time highs, analysts are closely monitoring events while maintaining a bullish bias. Referring to X, one analyst he said Stock market activity is showing an upward trend.
The analyst said that over the past few days, the average exchange volume flow (AEVF), which is used to measure BTC trading volume on exchanges like Coinbase and Binance, has increased by 9%.
The analyst added that the escalate in exchange activity suggests that the BTC market could be positioning itself for a major market revival. However, it needs to exceed the average annual volume threshold for that to happen.
This means that the AEVF should escalate by another 11%, exceeding 45%. During the last bull run, when Bitcoin price rose to $73,800, the AEVF increased to 45%.
While the uptrend seems ponderous, other market data shows that whales, especially those with at least 10,000 BTC, aggressively accumulated over the last week.
The buying decision coincided with the expansion through July 15, when prices broke through key resistance levels as high as $62,500, rising to $68,000 over the weekend.
Modern BTC whales have key support at $64,000
For now, the average purchase price of up-to-date whales, according to the analyst recordedis around $64,000. Therefore, assuming prices stay above this line, the bias remains bullish and immense holders will not be able to change their decision.
When prices are fluctuating, indicating the presence of buyers who are accumulating their stocks on dips, it is essential for traders to watch their reactions at key resistance levels.
Looking at the daily chart, Bitcoin needs to reject the lower prices below $66,000 and find momentum to break through $70,000 and $72,000. These two levels are key reaction points that have historically formed local liquidation or loading zones.
Featured image from Canva, Chart from TradingView