Bitcoin went above $ 22,000, but the whales did not push BTC this time
Bitcoin [BTC] has concluded the first week of July on a healthy trend as improved market sentiments paved the way for more accumulation. The bullish activity resulted in a significant uptrend that pushed it above $ 22,000 on the morning of July 6th.
The king token also rose as high as $ 22,527 on July 6. This was the first time it had fallen above the $ 22,000 price level since mid-June. It managed to achieve this thanks to strong market demand this week. The upside was strong enough to push it out of the short-term wedge pattern where it has traded since June.
Source: TradingView
Bitcoin experienced a strong buying volume during the July 7 trading session after breaking over its declining resistance line. However, it has since retreated to the $ 21,515 press price thanks to increased selling pressure as its relative strength index (RSI) entered the overbought zone of the four-hour chart. The Money Flow Index (MFI) recorded some outflows in the last 24 hours at the time of press release.
Shorts liquidations may have played a hand on the upside
The last upside was not supported by any prominent announcements. A closer look at BTC’s calculations, however, reveals that a significant amount of leveraged short positions were liquidated. Glassnode’s futures shorts liquidation survey reveals a sharp increase in liquidations from $ 10.23 million to $ 29.42 million between July 6 and 7.
Source: Glassnode
The liquidations may have given the extra bullish pressure that pushed Bitcoin over $ 22,000. The upside was also supported by higher currency outflows than inflows in recent days. Currency flows grew from 20,495 BTC against 18,648 BTC exchanges on 3 July. It had 50,966 BTC in exchange payments against 43,601 BTC in exchange supply by 7 July.
Source: Glassnode
The higher currency outputs than the inflows resulted in higher buying pressure for the cryptocurrency. Most of this volume came from the retail segment given the limited whale activity. The supply of whales (addresses with more than $ 5 million in BTC) registered a significant downturn since July 4th. This means that they have reduced their balances or sold BTC as the price went higher.
Source: Santiment
The lower supply of whales when prices rise suggests that the recent rally may end up being limited. However, an increase in whale transactions and balances at current levels may provide another bullish boost.
