5 Must-Know Facts About Bitcoin Mining and Exchanges This Week

At the start of the first week of July, Bitcoin (BTC) traders breathed a sigh of relief as the $30,000 support level held.

The BTC price continues to defy the bears despite a 20% increase in the second quarter, with both weekly and monthly trends appearing to be positive. What lies ahead?

A tranquil week is anticipated in the TradFi markets, as Wall Street prepares for the Independence Day celebration and there is not much in the way of US macroeconomic information to be released.

If bulls are to have a chance at surpassing the resistance that has been in place for a few months, Bitcoin needs volatility triggers from other sources.

Opinions amongst market participants are divided on the matter – some think that $32,000 and higher is attainable with ease, while others view this month as the zenith of Bitcoin’s 2023 resurgence.

Cointelegraph examines some of the major elements that are anticipated to have an effect on Bitcoin’s price action in the upcoming days and weeks.

Short-term BTC price upside calls extend to $40,000

The weekly close of Bitcoin was a favorable outcome for bulls, as it provided only a slight amount of fluctuation, and BTC/USD went up in value overnight.

On the start of the new week, Bitstamp reached a price of $30,850 according to Cointelegraph Markets Pro and TradingView, which was an effort to approach the yearly high of $31,000.

No signs of a trend reversal are visible yet, so traders with a more optimistic outlook are taking a wait-and-see approach as far as further upward movement is concerned.

“Jelle, a popular trader, declared to his Twitter followers that his Bitcoin plan has not changed,” as part of his latest analysis.

Jelle mentioned the 200-week exponential moving average (EMA), which, together with its companion simple moving average (SMA), has been providing market support since the short-lived disruption in June.

The accompanying chart indicated that the first major upside target was the all-time high of $69,000.

Crypto Ed, a fellow trader, was hoping for a surge to $36,000 and even $40,000, while at the same time taking into account the possibility of a decline to $28,000 – an area that had already become a popular spot for buying on the dip.

He stated that the market structure was still “good” despite the last-minute volatility that drove BTC/USD to $29,500 at the end of the month.

Material Indicators, a resource for on-chain monitoring, observed the part Bitcoin whales play in sustaining the BTC price range.

“It has been observed that BTC whales have been both selling and buying in the vicinity of $30k, which has been a contributing factor to BTC staying in this range,” part of further analysis noted.

July has never seen more than a 10% drop in BTC price, yet this hasn’t stopped CryptoBullet, a prominent trader, from predicting that the bullish trend will end this month, as reported by Cointelegraph.

CryptoBullet is forecasting that the area around $36,000 will be the peak, and that following that, there will be a decline, including relinquishing the key moving averages.

He followed up his initial prediction with further comments on Twitter, writing, “I’m not suggesting that we will plunge to 20k this or next month; in my opinion, it will occur in the fourth quarter.”

Banks in focus over bond-buying losses

The macroeconomic atmosphere looks to be tranquil this week as the U.S. focuses on the July 4 Independence Day celebration.

Little macroeconomic data is due to be released, and barring any unexpected events, cryptocurrencies should experience minimal volatility due to shifts in inflation expectations.

Expectations are still based on the possibility of an increase in interest rates when the Federal Reserve meets later this month to determine future policy.

According to CME Group’s FedWatch Tool, the likelihood of a 0.25% increase is close to 90% as of July 3rd. The verdict will be made in three weeks.

The Kobeissi Letter described the atmosphere as “short but important,” noting that every week has become a crucial one as Federal Reserve rate forecasts change quickly and stocks reach their one-year peak while trading is strong.

More and more attention is being devoted to the U.S. banking sector elsewhere.

The performance of the KBW Regional Banking Index (KRX) demonstrates that regional banks are still having difficulty.

Even Bank of America (BoA) has been noticed for its unprofitable bond purchases, which is an issue also experienced by the central bank of Germany.

“Balaji Srivinsan, an angel investor, asserted that the remarkable headlines in a Financial Times article about the Bundesbank’s plight are not given enough consideration.”

Kobeissi cautioned that the banking collapses in the United States that triggered the Bitcoin surge in March had similar characteristics to the current Bank of America scenario.

Bitcoin miners challenge record exchange transfers

Bitcoin miners have highlighted the importance of BTC prices surpassing and sustaining $30,000 – though maybe not in the way that bulls would hope.

Data from Glassnode, an on-chain analytics firm, shows an enormous surge in the number of coins miners are transferring to exchanges.

In April 2021, BTC/USD reached a peak of $58,000, setting a new record high for the year. This was surpassed in the present time.

“After the price of Bitcoin exceeded the psychologically significant $30K level, miners have continued to move significant amounts of BTC to exchanges,” noted Glassnode.

Miner balances have been generally increasing since the beginning of 2023, albeit at a slow rate. On January 1st, Glassnode data showed that the total balance was 1,824,377 BTC, which had risen to 1,827,916 BTC by July 2nd.

Despite the lower sales, there is not much proof to indicate that BTC miners are having hardships. Hash rate is still close to its highest ever, and network difficulty is only 3.26% lower than its highest levels witnessed last month.

BTC hodlers in profit refusing to sell

A more encouraging image is presented by the steadfast Bitcoin investor groups that refuse to offload their holdings regardless of the cost.

Despite the impressive gains seen this year, Bitcoin holders are still holding onto their coins and not selling in large quantities.

The amount of BTC deemed to be “illiquid” or not available to meet potential strong buying pressure is now being reflected in the supply.

Glassnode’s Illiquid Supply Change metric is “extremely heightened,” at a level that has only been seen during the depths of the 2022 bear market. Despite the rising prices, the belief of hodlers has also grown.

On paper, holders have grounds to cash out at $30,000. According to Glassnode’s Long-Term Holder Market Value to Realized Value (LTH-MVRV) metric, which tracks the profitability of coins held for 155 days or more, the average LTH entity is currently 47% in the black on their position.

Sentiment reflects investor indecisiveness

The sentiment data still clearly reflects the jittery attitude of the typical crypto market investor.

Bitcoin speculators have transferred 35,000 BTC to exchanges in a recent surge of enthusiasm.

The Crypto Fear & Greed Index demonstrates how sentiment can change depending on Bitcoin’s performance at the $30,000 mark.

Ether (ETH) also has a difficult challenge ahead of it in order to reclaim the $2,000 mark, not just BTC/USD which is facing a key resistance/support flipping task.

Fear & Greed fluctuates between the mid-50s, which is considered “neutral,” and the mid-60s, known as “greed.”

The Index is currently at its 2023 high of 69/100, with Bitcoin’s 2021 all-time high of $69,000 being only about 10% higher.

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