Bitcoin’s rally to highs of $35,591 over the weekend has run out of steam after blockchain data indicated a strikingly low exchange volume weekend.
On-chain data analytics firm, Santiment noted: ”Bitcoin nearly hit $36k again before dropping back down to $34k on a strikingly low exchange volume weekend. There was such low exchange inflow & outflow activity that our data indicated exchange volume hasn’t been this non-existent all year”
As of press time, Bitcoin was trading at $33,714, down 4.44% on the day, according to trading view data. Meanwhile, a trader, Crypto Ed, predicted accurately the retrace while warning on Monday that the weekend’s ground would ultimately be lost again. Stating:
“Full retrace coming up,” He continued, ”As long as we are pumping during a weekend with a CME gap $2200,- lower, I’m not that excited yet. Give us some proper retests and that’s when I think we can unleash the bulls!”
Interestingly, Bitcoin’s recent price drop comes amid a decline in the number of coins held on exchanges, a bullish development. On July 5 Santiment noted ”The ratio of #Bitcoin’s supply on exchanges has encouragingly slid down to its lowest since early January. The 6-month low is a promising sign, as it generally will indicate that there is a decreased risk of more major $BTC selloffs”
Bitcoin ($BTC) Exchange Supply, Courtesy: Santiment
A day before, the on-chain analytics firm noticed a trend of BTC accumulation spike among Bitcoin large holder addresses referred to as ”whales”
Stating: ”Bitcoin’s whale addresses holding between 100 to 10k $BTC kicked off July with a 60k $BTC accumulation spike, the highest daily spike of 2021. These addresses hold 9.12M coins combined after holding 100k less $BTC just 6 weeks ago.”
No doubt all these are quite bullish, however, one analyst believes Bitcoin will consolidate for the major part of July.
A crypto analyst referred to as ”Crypto Polymath” believes Bitcoin will see more sideways consolidation till mid-July due to a declining supply on exchanges, stating: ”So, I think we will see a side-way movement of price till the mid of the month and then we should see institutional buying, which will push the price to a new resistance level of $40,000/BTC; Since there are only 13% available in exchanges for sale”.
Bitcoin’s selling pressure was felt at the other end of Alternative cryptocurrencies, otherwise referred to as ”Altcoins”. Large-cap Altcoins declined alongside Bitcoin with Ethereum (ETH,-3.88%), Tezos (XTZ, -6.82%), Litecoin (LTC, -5.41%), Bitcoin Cash (BCH, -5.47%) down in the last 24 hours.
However, tokens such as Cosmos (ATOM, +5.93%), The Graph (GRT, +12.73%), Elrond (EGLD,+6.83%), Synthetix (SNX,+19.59%), Enzyme (MLN, +37.09%), Civic (CVC, +12.42%) and a few others defied the selling pressure in the market by trading in green at press time.
Why Enzyme, The Graph Climbed Higher
Enzyme is an on-chain Asset Management that enables building, scaling, and monetizing investment strategies in a fast and cost-effective manner. Enzyme is powered by the MLN token.
On July 5th, Enzyme’s rally to highs of $123.67 from lows of $80.15 coincided with the news of its BINANCE listing. Enzyme then gained nearly 54% as a result. MLN has been ticking higher since June 27 when it picked up from lows of $64.90.
Binance had announced on July 5, ”Binance will list Barn Bridge BOND and enzyme finance (MLN) support”
The Graph is a decentralized network for indexing and querying APIs with GraphQL, The Graph powers applications with access to blockchain data. The Graph enjoys support from a recently launched community called ”The Graph Advocates”. Graph Advocates will use their knowledge of blockchains and open-source networks to raise awareness and adoption of Web3.
Asides from this, the Bitstamp exchange on July 1 announced zero fees trading for the graph’s native token GRT on the platform until the end of September. All these developments and also a technical breakout contributed in a way to GRT’s climb to highs of $0.79 on July 5.
Image Credit: Shutterstock
