Bitcoin continues its impressive rally despite market pressures. A 30% surge over the past month pushed it into the $34,100-$34,900 range. However, CryptoQuant’s Julio Monero notes potential signs of a pause as short-term holders book 6% profits and whales move their assets. Market analysts watch Bitcoin’s open interest and trading volume as it hits $34,100. Meanwhile, the US Federal Reserve’s core PCE measure shows a cooling annual inflation rate at 3.7%, though monthly core PCE increased due to higher energy prices. Investors remain alert for any signs of a slowdown in Bitcoin’s rally amidst a dynamic market.
On-chain metrics for Bitcoin (BTC) have raised concerns of a potential pause in the cryptocurrency’s recent rally, according to research by CryptoQuant. Despite facing various macroeconomic, expiry, and end-of-month pressures, Bitcoin bulls are holding strong above the crucial $34,000 mark. Traders are closely watching the market as they assess whether the recent bullish momentum will continue or start to wane.
Over the past month, Bitcoin experienced a remarkable 30% surge in price, with its value hovering within the $34,100-$34,900 range this week.
Bitcoin Price May Witness Retracement: CryptoQuant
Julio Monero, the research head at CryptoQuant, recently highlighted two significant on-chain developments that point toward a potential pause in Bitcoin’s price rally. Monero noted that short-term holders have started selling BTC at a 6% profit, marking the highest profit margin since April. This suggests profit-taking by short-term investors as the BTC price reached a monthly high of $35,150 this week.
Moreover, Monero revealed that whales, the larger cryptocurrency holders, have been making significant daily transfers, reaching levels not seen since June. Whale Alert, a service that tracks large cryptocurrency transactions, reported substantial BTC transfers to popular exchanges like Coinbase and Binance this week, coinciding with Bitcoin’s surge beyond $35,000.
BTC Price Goes Into Retracement
Market analysts are closely monitoring Bitcoin’s open interest (OI), which currently appears to be relatively flat. According to Trader Skew, there is a lack of significant buying or selling pressure at the moment. However, Bybit OI has increased by approximately 8,000 BTC, signaling increased interest in BTC futures contracts.
On the other hand, Crypto Tony anticipates that Bitcoin’s price may encounter resistance near the $36,000 mark before potentially facing a rejection.
As of the latest data, Bitcoin’s price experienced a 15% increase this week, with the current trading price resting at $34,100. The cryptocurrency’s 24-hour price range saw a low of $33,416 and a high of $34,238. It’s worth noting that the trading volume has decreased by 18% in the last 24 hours, adding to the uncertainty surrounding the near-term price direction of Bitcoin.
In the wider financial landscape, the preferred gauge of the US Federal Reserve to measure inflation, known as core Personal Consumption Expenditures (PCE), has shown a cooling down of the annual rate to 3.7%. However, the core PCE increased month-over-month due to surging energy prices, reflecting the broader economic challenges that are influencing various financial markets, including the cryptocurrency sector.
The cryptocurrency community and investors alike remain on high alert, closely watching for any signs of a potential pause in the recent BTC rally as the market navigates through a complex web of influences and dynamics.