Bitcoin is showing signs of “healthy consolidation,” according to well-regarded analysts, prompting increased speculation about an imminent BTC price rise.
Bitcoin, priced at $30,825, had bulls rallying around $31,000 on July 4th, amidst a U.S. market closure, opening opportunities for volatility.
Is Bitcoin Poised for a Sharp Price Increase?
Cointelegraph Markets Pro and TradingView data revealed attempts by the BTC price action to solidify gains acquired overnight.
The highest point reached was close to $31,400 before the momentum subsided, keeping BTC/USD within a constricted trading corridor.
Regardless of the lack of new yearly highs, market participants exhibited bullish sentiments on lower timeframes, given recent trends.
Trading suite DecenTrader proposed that Bitcoin appeared “bullish across almost all time frames” based on their unique trading tools.
“Feels like the market is getting ready for a sharp rise,” observed DecenTrader co-founder Philip Swift, also the creator of on-chain data source LookIntoBitcoin, on the day.
Michaël van de Poppe, founder and CEO of trading firm Eight, anticipated rapid gains would only materialize once BTC/USD surpassed $32,500 to establish new highs.
“Healthy consolidation on Bitcoin here. Some highs have been tested, but no acceleration,” he noted.
“The actual acceleration will likely happen above $32,500. Until then, it’s just a slow grind.”
Some are still predicting a drop in the latter half of 2023 following a midterm peak. As reported by Cointelegraph, an increasingly popular projection for the year’s high is centered around the mid-$30,000 range.
“The longer Bitcoin maintains above $25,000 on the macro level, the more I lean towards a macro bottom being established,” popular trader Crypto Tony stated as part of a new analysis on the subject.
“I still believe we’ll see a larger drop later this year, but it will likely be part of a broader accumulation zone.”
Increase in BTC Supply by Smaller Entities
Meanwhile, the latest on-chain statistics from analytics firm Glassnode pointed towards continued accumulation among smaller players in the Bitcoin investor scene.
These “shrimp,” defined as wallets holding less than 1 BTC, are currently boosting their holdings by more than 33,000 BTC per month on a rolling basis.
Glassnode states that this data is noteworthy, “with only 130 / 5263 (2.5%) trading days recording a larger monthly position change.”
“This takes the total coins held by the Shrimp class to 1.33M BTC,” it further commented.
Additional Information: The accumulation of Bitcoin by smaller investors, or “shrimps,” showcases the democratizing potential of cryptocurrencies. As more individuals across the globe gain access to digital assets, the dynamics of wealth and financial empowerment are gradually shifting. This trend also highlights the significance of digital financial literacy in ensuring that the benefits of this shift are widely distributed.