As the cryptocurrency began to recover, investors started taking their funds off exchanges. This switch has caused the number of BTC on trading venues to plummet below 2.4 million.
Meanwhile, the CTO of Glassnode has drawn a correlation between Bitcoin’s price and the growing number of whale accounts (accounts holding at least 1000 BTC).
He noted that BTC whales have been steadily increasing their holdings during that period and have grown to more than 2,000 addresses. The price of BTC has performed similarly, rallying over $40k.
That said, both metrics highlight a growing concern in the cryptocurrency community; a liquidity crisis.
Apart from the influx of whales, other factors including the estimated three million lost coins, the recent Bitcoin mining reward halving, and the highlight of 2020–the inflow of institutional investment and adoption.
These factors, put together, highlight the growing liquidity crisis plaguing the Bitcoin space.
Key BTC Levels to Watch — January 10
Bitcoin has finally undergone a notable correction, just as predicted in our previous analysis. This correction should clear the way for the benchmark cryptocurrency to aim for the highly-coveted $50k resistance.
The cryptocurrency saw a flash crash over the past few hours to the $34,475 support before rebounding sharply back above $38k.
Our bullish continuation expectation is further boosted by the hourly MACD indicator, which shows that BTC is now well in oversold conditions.
Meanwhile, our key resistance levels are at $39,000, $41,200, and $42,000. While our key support levels are at $37,827, $36,000 and $34,475.
Total Market Capitalization: $1.04 Trillion
Bitcoin Market Capitalization: $707 billion
Bitcoin Dominance: 67.9%
Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.
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