Bitcoin Plummets as Traders Cash Out of Profits, Following Recent Rally
Login

Bitcoin Plummets as Traders Cash Out of Profits, Following Recent Rally

Estimated Reading Time: 3 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Azeez Mustapha

Updated:


Based on on-chain activities, analysts assert that there is massive profit-taking occurring in the market since Bitcoin (BTC) peaked at $42,600 on Sunday. As a result, the benchmark cryptocurrency plunged by over 10% since its recent peak.

On-chain analytics platform Glassnode noted that the big question in the mind of the BTC community is if this is a “Disbelief Rally,” where there is immense apprehension of the new bull rally, or simply a Bearish Relief Rally in a higher time-frame downtrend.

The analytics platform also noted that mass accumulation is taking place and shares a similar structure with the 2018 bear market.

Glassnode revealed that Bitcoin recorded a large volume of coin outflows from exchanges over the past week. The company noted that coin outflows currently rest around 100,000 coins per month, a level not seen since BTC broke the $20,000 barrier in November 2020. This outflow rate has caused the balance on crypto exchanges to drop to 13%, a three-year low.

That said, exchanges outflows are considered bullish indicators for the underlying cryptocurrency as it means liquidity drops significantly, causing a spike in demand and value.

Key Bitcoin Levels to Watch — August 3

BTC has fallen back into the $41,000 – $31,000 pivot zone as the market goes into correction mode following its 11-day-long bull run. BTC trading sentiment now resides in neutral conditions, as bulls will likely use the $38,500 as a ramp to drive prices higher.

BTCUSD – 4-Hour Chart

That said, bulls need to act fast while defending the $38,500 support, as bears could pick up the mantle, given the neutral price action in the market, and begin another bearish campaign. In summary, the $38,500 level is the crucial level to defend (or conquer by bears) to determine the next possible near-term direction for the cryptocurrency.

Meanwhile, our resistance levels are at $39,500, $40,500, and $41,000, and our key support levels are at $37,500, $37,000, and $36,000.

Total Market Capitalization: $1.57 trillion

Bitcoin Market Capitalization: $724.8 billion

Bitcoin Dominance: 46.2%

Market Rank: #1

 

You can purchase crypto coins here: Buy Tokens

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News