Bitcoin price fallen below a $32,000 critical hold point but whales keep accumulating 100,000 BTC since May 21st

By Selena On Jul 17, 2021

Bitcoin price is seeing an uphill battle between the bulls and the bears near the $31,000 level, which makes it an important level to watch out for. At press time, BTC is trading at $31,398, recording a slight 2% drop over the past 24 hours.

BTC/USD 4-hour chart | Source: TradingView

Bitcoin bulls defended the price at the $31,000 level again

The $31,000 to $34,300 zone has received strong interest from buyers and sellers as 9.93% of Bitcoin supply has moved within this zone.

“This is now convincingly the largest realized volume cluster since $12k,” the firm commented.

Bitcoin UTXO realized price distribution annotated chart | Source: Glassnode

Bitcoin’s inability to recover quickly from strong support levels shows a lack of demand from investors. Evidence of current disinterest comes from BlackRock CEO Larry Fink, as AZCoin News reported, who suggested that investor demand for cryptocurrencies has dropped recently. Fink says that in his last two weeks of business travel, not a single question about Bitcoin and crypto investing was raised to him.

Another sign of reduced demand is the 90-day inflow into the United States and Canada-based Bitcoin funds have dropped to 12,794 BTC compared to 191,846 BTC in January 2021, a 93.3% decline.

Bitcoin funds saw their BTC reserves decline by 93.3% | Source: ByteTree

The good news is whales keep buying.

“Spouting whale Bitcoin may have dropped to $31.5k Thursday, but the BTC ‘millionaire tier’ of addresses holding between 100 and 10,000 keeps climbing. The cumulative amount of holdings for these whales has increased by 100,000 $BTC since May 21st”, Santiment stated.

Source: Glassnode/Twitter

Bitcoin has dipped in the past 24 hours, down to almost $31,000, and made a small recovery back from this dip. But this is not enough to renew faith that a rebound would be more likely than a bottom. If it breaks $30,000 before the week is over, then it might as well be very well in bear territory. Regardless, other investors believe this will spark a weekend relief rally. There’s no telling how the rest of the weekend will play out.

A look at altcoins, meanwhile, underscored the lack of bullish sentiment across cryptocurrency markets as the week came to a close. Most of the altcoin on market saw heavier losses than BTC/USD. Ether was heading to a crucial support zone of its own around $1,800. It seems that ETH is struggling below $2,000 and the community is anxiously waiting to see if the upcoming hard fork in London will improve the price.

Three notable altcoins today are NEM (XEM), Augur (REP), and district0x (DNT).

After a month with a 24-hour average trading volume XEM of $50 million, demand for the token increased on July 16 as volume increased to $532 million, and the price increased by 35%. $0.151. Currently, XEM is maintaining around this level and recording an increase of 8% in the last 24 hours. The cause is probably due to the announcement that Symbol (XYM), an enterprise blockchain protocol developed by the NEM team, has agreed to a collaborative project with the Colombian government.

REP price | Source: CoinMarketCap

REP started its impressive rally after 24-hour trading volume skyrocketed from a daily average of $17 million to over $521 million. Due to the spike in trading volume, the price REP rose 57% from a low of $14.60 to an intraday high of $22.97. Currently, REP still recorded a double-digit increase, up to nearly 23% in the past 24 hours.

Finally, Distric0x. DNT trading volume jumped from $3 million to over $60 million, resulting in a 73% increase from $0.112 to an intraday high of $0.193. DNT has now dipped to $0.121 but still recorded a 7% gain on the day.

Bitcoin’s rising dominance, hitting 46.3% on the day, added to altcoins’ woes.

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