Bitcoin in a Sell-off, Rumors Say Satoshi is Cashing Out
Speculations are rising that enigmatic creator of Bitcoin (BTC), Satoshi Nakamoto, may be selling. Following this, BTC fell into the holiday weekend. It dipped by more than 10% from its weekly high to less than $9,000 on Thursday.
For the first time, the standard of forty mined BTC a month after the cryptocurrency’s origin in 2009 changed. As a result, it is scaring investors who think that a handful of early whales (the anonymous Nakamoto and his inner circle) are sitting on billions of dollars worth of Bitcoin.
Adam Vettese noted, “While it is unclear if it was Satoshi Nakamoto, it is likely to be a very early-stage adopter of the crypto asset. And the timing of the rumors themselves appears to be the source of yesterday’s flash crash.”
But not all insiders are shaken. Andreessen Horowitz, a venture capital firm, announced a $515 million crypto fund last month. And it envisions the chances of a fourth crypto cycle soon. It could send the price of Bitcoin to new highs. Also, Federal Reserve chairman, Jerome Powell’s, comment last weekend was that they were not out of ammunition by a long shot. This focused on Bitcoin’s value proposition for some who worry about inflation during the ongoing economic crisis.
Furthermore, the BTC price declined to $8,840. Then, a fall came with 8 hours before the weekly close. THis is due to a confluence of miners selling more Bitcoin than they were mining. BTC marked six straight lower highs. And the retest of the $8,800 support leaves Bitcoin vulnerable to an extreme pull-back.
Based on the daily chart, since June 19, BTC has recorded six consecutive lower highs, with the price rejected at $14,000, $13,300, $12,300, $10,600, $10,500, and $10,000. This means that all local tops were lower compared to their previous peaks.
For technical analysis, lower highs mean that buyers are failing to make a new bull cycle. When it reaches a lower peak, it signals that the market’s selling pressure is too strong to break out of it.
In addition to that, a clear rejection of the $9,800 to $9,900 range and the projected third test of the $8,800 support level hints that Bitcoin is not ready to start a rally above $10,000 yet.
Aside from that, the BTC price recovered at $8,840. It is testing the $8,800 support area for the second time within four days. Usually, the digital asset tends to break down under a substantial level of support in the third or fourth touch. With that, BTC may possibly experience a clear breach of $8,800 upon the weekly close.
Then, shortly after falling near $8,800, the price of Bitcoin recovered to about $8,900. This means BTC is set for a short-term price spike after the weekly open on May 25.
However, data from TradingLite by cryptocurrency trader Hsaka displays a significant amount of sell orders on OKEx in the $9,300 to $9,400 range.
According to the firm response of buyers at an $8,800 support level and selling pressure at $9,300, Bitcoin might stay in between $8,800 to $9,300 range before seeing the next pullback.
In the case that the price of Bitcoin rebounds in the short-term to low-$9,000 regions and revisits $8,800, the possibility of BTC seeing a much more massive correction to around the $6,000 to $7,000 range increases.
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