Market intelligence platform IntoTheBlock says that new data shows Bitcoin (BTC) is primed for a sudden breakout.
IntoTheBlock says Bitcoin could easily retest the key psychological $30,000 level following a bullish event.
The firm’s thesis is based on the amount of buyers of Bitcoin at the price range between $27,345 and $30,000.
“Bitcoin is back in the spotlight as Grayscale emerges victorious from its SEC lawsuit. The next milestone? $30,000. Our on-chain data reveals that 6.2 million addresses acquired ~2.6 million BTC between the current price and $30,000. These ‘bubbles’ are significant and could burst two ways.”
IntoTheBlock says that approval of a Bitcoin exchange-traded fund (ETF) could spark strong bullish momentum sending the king crypto much higher. Some analysts believe the odds of approval have increased after a court ruled that the U.S. Securities and Exchange Commission (SEC) must reconsider its rejection of Grayscale’s application to launch a BTC ETF.
However, the firm warns that bearish sentiment could send Bitcoin abruptly downward if the buyers of BTC in the $27,000 to $30,000 range quickly sell to protect against losses.
Says IntoTheBlock,
“Bearish sentiment may trigger a rush to break even, adding to sell volume. However, if there is enough strong bullish momentum, for example, because of an ETF approval, Bitcoin could breeze through these roadblocks.”
Bitcoin is trading for $26,500 at time of writing, down 2.3% in the last 24 hours.
Next, IntoTheBlock notices a massive increase in long-term holders of the peer-to-peer payments network Litecoin (LTC).
“Long-term Litecoin holders are surging! Nearly 5 million addresses have held LTC for over a year, almost doubling the count from last year’s 2.55 million. A clear sign of confidence from holders despite market conditions.”
Litecoin is trading for $65.92 at time of writing, down 1.7% in the last 24 hours.
IntoTheBlock also looks at which crypto projects have the most long-term holders.
At the top of the list is smart contract platform Ethereum (ETH) with 73.9 million, followed by Bitcoin at 33.6 million.
ETH-rival Cardano (ADA) is seeing a 170.4% increase in long-term holders for a total of 2.65 million, according to the firm.
Blockchain oracle Chainlink (LINK) stands out for a 3% decline in long-term holders in the past year.
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
The post Bitcoin Could Breakout if Bullish Momentum Is Strong Enough, Says Crypto Analytics Firm – But There’s a Catch appeared first on The Daily Hodl.
