The Bitcoin market experienced a setback in its upward trend following the Securities and Exchange Commission’s (SEC) postponement of decisions regarding spot Exchange-Traded Funds (ETFs). This sparked a wave of profit-taking, with investors buying at lower prices and selling at peaks for gains. Current analysis predicts that without positive news, Bitcoin may face challenges in surpassing the $38,000 mark in the upcoming week as the profit-taking sentiment continues.
Bitcoin’s On-Chain Activity Jumps
The anticipation of an approval for a spot Bitcoin exchange-traded fund (ETF) in the United States has increased interest in the Bitcoin price. This increased demand has consequently led to a rise in on-chain activities.
The Bitcoin blockchain recorded $11.6 million in transaction fees, as reported by CryptoFees. Current data from YCharts indicates that the average fee per transaction is now $17, following a high of $18.69. This represents a significant increase of 746% compared to the same period last year.
Moreover, Bitcoin’s transaction volume has seen a notable increase recently, reaching a two-month peak at 572.8K. This trend indicates increased activity on the Bitcoin network, even as its trading value hovers just below $38,000. This uptick in network activity suggests the potential for further price growth in the upcoming week.
IntoTheBlock has highlighted that addresses holding over 1,000 BTC have now accumulated the largest total in 2023. These large entities have been consistently growing their Bitcoin holdings since the start of the year, with their current holdings amounting to 7.67 million BTC, valued at approximately $275 billion.
This analysis suggests that this accumulation signifies robust demand and a solid standing for major Bitcoin institutions. Additionally, the quantity of Bitcoin held by long-term investors has also reached new all-time highs recently.
However, despite bullish on-chain metrics, Bitcoin price might remain under $38K due to the ongoing profit-based surge.
What’s Next For BTC Price?
Bitcoin re-entered its upward trend channel after witnessing accumulation near the low of $35.5K. However, the current rally seems short-term as investors are set to exit again near the $38K high. As of writing, BTC price trades at $36,760, surging over 1.8% from yesterday’s rate.
The subsequent rebound from the support of the $35K line indicates continuous buying demand at lower prices. Bulls are now attempting to drive the BTC price past the channel’s resistance line of $38K; however, it can trigger new short positions. With positive news, the BTC price might break $38K and soar toward the $40,000 level.
A downward price turn and break below the channel would signal a rush of traders exiting the market, potentially dragging the price below the EMA100 trend line. A break below $35K will force the price to test $33,300. At these lower levels, aggressive purchasing by bulls is anticipated.
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