by: John P. NjuiPosted on:

Bitcoin Addresses Holding 0.1BTC Hits ATH Despite Trend to $20k

Summary:

  • The number of Bitcoin addresses holding 0.1 or more BTC has hit a new all-time high of 3.77 million.
  • The increment in holders is despite Bitcoin’s ongoing downward trend towards $20k.
  • Bitcoin has lost the 200-week moving average as support and looks set to retest June’s low of $17,600.
  • Traditional markets also hint at a general pullback that could weigh down Bitcoin with the new week.

The number of Bitcoin addresses holding 0.1 or more BTC has hit a new all-time high f 3.77 million. This milestone was observed and shared by the team at Glassnode through the following Tweet.

Bitcoin Is On a Clear Downtrend Towards $20k.

The number of Bitcoin addresses holding 0.1 or more BTC hitting an all-time high comes at a time when the King of Crypto is undergoing a significant pullback in the crypto markets.

Last week, Bitcoin looked set to break the $25k resistance level, but news of record-breaking inflation in the UK and Eurozone has dampened its upward trajectory. Bitcoin has since dropped to a local low of $20,783 and looks set towards retesting the December 2017 all-time high of around $20k. The latter level is a critical psychological support zone that could determine whether Bitcoin retests June’s low at $17.600

What the One-Day BTC/USDT chart Says

Further checking the one-day BTC/USDT chart below reveals that Bitcoin is struggling to reclaim the 200-week (red) and 50-day (white) moving averages as support. Its downtrend is further confirmed by the daily MFI, RSI, and MACD pointing towards an ongoing pullback that could continue for the rest of August.

Source, Tradingview.com

However, the daily trade volume hints at renewed interest for Bitcoin towards tomorrow’s weekly close, which could provide momentum for BTC to at least attempt to reclaim the $22k support zone.

But Bitcoin could again be in bear territory once traditional markets open on Monday, given that both the S&P500 and Nasdaq are undergoing similar pullbacks that could drag the crypto markets down. This is based on the fact that Bitcoin and the crypto markets have long been correlated with the traditional markets through these two indices.

Therefore, caution is advised when going long on Bitcoin, mainly when using leverage.

© Solana Daily Brief, Inc. All Rights Reserved. This article is for informational purposes only. It is not to be used as legal, tax, investment, financial, or other advice.