Bitcoin Maintains Sideways Pattern Ahead of Ethereum Merge

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On-chain data provider Glassnode recently revealed that a large majority of Bitcoin (BTC) tokens on the market have been dormant for over 12 months. Bitcoin addresses described as dormant are those that have recorded no outgoing transactions within a given period and have maintained an above zero balance all through the said period.

Glassnode some hours ago: “The volume of Bitcoin supply that has remained unspent for at least one year has reached a new ATH of 12.589M BTC. This is equivalent to 65.77% of the circulating supply. Increasing dormant supply is a characteristic of #Bitcoin bear markets.”

In the report, the on-chain analytics provider noted that the 2022 bear cycle has been one of the most challenging for cryptocurrency investors, with heavyweights like Bitcoin and Ethereum slumping from their all-time highs by 75% and 85%, respectively.

Events like this have been commonplace in past near cycles, with investors seeing unrealized profits crashing as the market falls below its aggregate break-even margin levels.

Meanwhile, Bitcoin slumped by 38% in June, the cryptocurrency’s worst monthly performance since 2011. At the time, BTC trades below the $10 mark, making June’s crash the worst in “modern-day” BTC history.

Regardless, the flagship cryptocurrency has rebounded by over 30% since June, prompting analysts to speculate that the bear cycle, which has persisted for most of 2022, could be coming to an end.

Key Bitcoin Levels to Watch — September 6

Bitcoin maintained a sideways pattern into the late North American session on Tuesday, even as many crypto assets recorded notable gains.

BTCUSD – 4-Hour Chart on Gemini. Source: TradingView.

The cryptocurrency remained suppressed by the $20,000 resistance coupled with the 50-day SMA on the 4-hour chart. At the same time, the benchmark cryptocurrency held itself solidly above the $19,600 pivot base.

That said, the broader market seems to be excited ahead of the Ethereum Merge upgrade scheduled for September 14.

Meanwhile, my resistance levels are at $20,000, $20,500, and $21,000, and my key support levels are at $19,600, $19,000, and $18,000.

Total Market Capitalization: $997 billion

Bitcoin Market Capitalization: $380.9 billion

Bitcoin Dominance: 38.2%

Market Rank: #1

 

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.