Buying pressure on Bitcoin increased over the last month as its price crossed the $27,000 mark, thanks to the latest bull rally
- BTC’s supply on exchanges dropped, as did its total amount of holders
- BTC was down by over 2% in the last 24 hours, and indicators were bearish
As the global economy has slowly started to decline, all eyes are on alternative investment and financial sources such as the crypto market, which includes Bitcoin [BTC].
While the US dollar starts to suffer, will Bitcoin or the larger crypto market be negatively affected? Or will the US dollar’s decline help the crypto market, especially BTC, flourish in the coming days?
Is confidence in Bitcoin increasing?
Seth, a popular influencer on X (formerly known as Twitter), recently mentioned in a tweet that Ray Dalio, founder of hedge fund Bridgewater Associates, warns about a US debt crisis. The unsustainable fiscal policy of the US mounted a record-breaking 33 trillion in debt.
He said that he would rather hold gold or BTC than bonds. He also admitted to holding a small amount of BTC but preferred gold. While Dalio had more faith in gold than BTC, the market sentiment may beg to differ. Over the last month, buying pressure around the king coin witnessed a rise. This was evident from Santiment’s data.
As per the chart, BTC’s supply on exchanges dropped sharply while its supply outside of exchanges went up. Whale activity around the coin was also high, meaning that the big players were actively trading the coin. However, it was surprising to see that, despite a hike in buying pressure, Bitcoin’s total amount of holders dropped in the last few weeks.
Not only investors, but Glassnode’s data revealed that the miners were also buying BTC, or rather, holding their claims. This was evident from the recent rise in Bitcoin’s miners’ balance.
Bitcoin witnesses a price correction
The crypto market recently witnessed a bull rally, allowing most cryptocurrencies, including BTC, to register gains. In fact, BTC finally managed to sustain its price above the $27,000 mark.
However, the uptrend did not last long, as the coin saw a price correction. According to CoinMarketCap, BTC was down by more than 2% in the last 24 hours. At press time, it was trading at $27,601.75 with a market capitalization of over $538 billion.
A look at BTC’s daily chart revealed that the possibility of a continued downtrend was high. Its Money Flow Index (MFI) and Chaikin Money Flow (CMF) both registered downticks, increasing the chances of a southward price movement.
Nonetheless, the Moving Average Convergence Divergence (MACD) remained in the buyers’ favor as it displayed a bullish edge in the market.
