Forex Analysis & Reviews: 23.06.2023 - Whale transactions surge: A...

23.06.2023 10:45 AM

Whale transactions surge: A worrying sign for Bitcoin's upward trend

Over the past seven days, Bitcoin's market capitalization has increased by 25%, and trading volumes have reached unprecedented levels of $30 billion, the highest in months. The asset has reached an important level of $30,000 and is holding its position for further upward movement towards the resistance zone of $30,500 to $31,000.

After several days of active upward movement, the pace of Bitcoin's price advancement has slowed down. Despite this temporary pause, the cryptocurrency's bullish momentum has been accompanied by growing buying volumes, indicating high investor interest in BTC. However, certain signals are already emerging in the market that cast doubt on Bitcoin's further progress.

Fundamental Factors

Let's start, as always, with the fundamental factors that may negatively impact Bitcoin's bullish trend. The U.S. Securities and Exchange Commission (SEC) has become the main source of negative news for the cryptocurrency market. Yesterday, there was an SEC meeting, and rumors are spreading that the regulator will take action against the DeFi market and stablecoins.

The agency has not made any specific statements, but the circulation of such rumors is already affecting the crypto market activity negatively. Considering that Bitcoin has reached a local peak near $30,000 and is unable to move further, the question of trading volumes becomes particularly acute.

Santiment analysts note a surging "whale transactions" in the Bitcoin market. Thanks to the volumes from institutional investors, BTC has made a powerful bullish surge in recent days. However, experts are confident that this is a worrisome signal that calls into question further upward movement.

For the BTC price rally to continue, larger volumes than those already involved in the market are needed. The main suppliers of such large volumes are the "whales" who are already injecting liquidity into the market. As a result, a situation may arise where Bitcoin's upward movement stalls due to a lack of necessary volumes.

BTC/USD Analysis

As of 08:00 UTC, Bitcoin is trading at the $30,000 level, with trading volumes around $18 billion. The price of BTC reached a local high at $30,700, after which there was a significant increase in bearish volumes. As a result of the trading session on June 22, the asset formed an indecisive "doji" candle, which usually indicates a relative balance between sellers and buyers.

The decrease in trading volumes to $18 billion also indicates a decline in buying activity. Stochastic and RSI have confirmed the completion of a massive bullish movement. The second attempt to initiate a bullish surge was unsuccessful due to significant bearish volumes. Nevertheless, MACD continues to move in an upward direction within the green zone.

If the current trend continues, we can expect a further decline in trading activity and a local pullback in Bitcoin's quotes. The most likely target for this is the $29,100 level, where a local support zone is located. Subsequently, the asset may resume its upward movement towards key short-term levels of $30,500 to $31,000.

Conclusion

Bitcoin's bullish surge has allowed the asset to recover from the May decline and reach a local price high. It is likely that after a local pause, the cryptocurrency's upward movement will continue towards key levels of $35,000 to $36,000. Bitcoin bulls have a window of opportunity until the next Federal Reserve meeting, where the interest rate will be raised again, making medium-term targets above $35,000 remain relevant.

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*Disclaimer: The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.