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The first week of August has been auspicious for the first cryptocurrency after the decline in the price of Saturday, July 31, which concluded with ten days of uninterrupted rise in the price. At the time of writing this article, bitcoin (BTC) has a price of USD 44,800, according to the CriptoNoticias price index.
The first cryptocurrency shows an appreciation of 15% in the week, while in the month of July its price showed a progress of 20% and has appreciated 32% so far this year.
The downward trend at the beginning of the week was reversed on Wednesday August 4, to clearly break the $ 40,000 resistance. This last value has now become a new price support, which would be on its way to $ 100,000, according to a Bloomberg analysis, commented this Saturday by CryptoNews.
The recent local low of $ 30,000 is equivalent to the $ 4,000 that bitcoin reached at the end of 2018, according to analysis by Mike McGlone, chief of Bloomberg Intelligence strategy. McGlone claims that the price is in its longest period below the 20-week moving average, since the beginning of 2019, when a bullish rally began.
For its part, the cryptocurrency of Ethereum, ether ( ETH), continues to show higher returns than bitcoin , according to the report. It dominates widely in appreciation compared to bitcoin so far this year, with 237%. The recent implementation of the EIP-1559 together with the London hard fork would have caused the upward momentum of the last days.
100,000 BTC left the exchanges in July
An analysis of the analytical firm Glassnode on the bitcoin market in the last week of July, reveals that in that week more than 100,000 BTC left the exchanges, which was not seen since November 2020, as we reported in this medium.
These outgoing flows have brought the BTC inventories of exchanges to minimum values this year, approximately 13% of current, or about 3.6 million BTC.
JP Morgan takes a 180 degree turn from bitcoin
For years, JP Morgan had been staunchly opposed to bitcoin. Not only were there statements from its CEO, Jamie Dimon, who qualified that cryptocurrency as fraud, this executive also made threats of dismissal to employees who traded with bitcoin.
After the support of recognized Institutional investors to bitcoin in 2020, JP Morgan has gradually ventured into the inclusion of bitcoin, first for its general clientele, and more recently for its private banking clients, a fact reported here. The major US bank will offer a bitcoin fund to selected clients in partnership with the New York Digital Investment Group (NYDIG).
This graph, sent by the Kraken exchange, shows the percentage of BTC in circulation that have not moved in at least one year (+1 Year). There are some trends that can be observed in the curve, in relation to the bullish and bearish phases of the bitcoin cycles.
For example, a maximum of the curve +1 Year, is consistent with the beginning of a new bull market. When the number of currencies begins to decline, in the midst of a price boom, a rising market would be starting. When the slope of the decreasing curve is accentuated, which implies that sales intensify, the maximum of the cycle would be close.
Kraken notes that last week the curve declined 1%, the largest percentage drop in four months. The curve, according to Kraken, is behaving in a similar way to the 2012-2014 period, which would be congruent with a start of a bullish scenario, after the 55% drop since mid-April .
Bitcoin market: a bazaar of buyers
The different segments of bitcoin holders are intensifying purchases, while that cryptocurrency is still undervalued . Such a statement comes from analyst Willy Woo, who reiterated in his latest newsletter on the market that both large and small investors continue to buy bitcoin, as reported by CriptoNoticias.
The analyst points out that in these At the moment, a situation is occurring that I had not observed before in the bitcoin market: all the cohorts of holders were buying bitcoin for nine continuous days. Who sells then? Traders are selling off the so-called speculative inventory of exchanges. “This contributes to the supply shock,” says Woo.
A look at the bitcoin market in July
The volume of bitcoin traded in the markets spot (cash) during the month of July fell by 31.5 % compared to June, according to a report by the CryptoCompare company, reviewed by CriptoNoticias. The sales volume in July was USD 1.9 trillion, the lowest of the year.
Daily volumes in July fell significantly compared to those registered in recent months. For example, last May 19, according to the analysis firm Kaiko, USD 30,000 million were moved, while the highest volume figure for July is less than USD 10,000 million.
