On-Chain Data Suggests Bitcoin’s Bullish Bias Still Intact
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Despite the massive plunge suffered over the past week, on-chain data proposes that demand for Bitcoin (BTC) is still intact. The data revealed that the declining number of BTC stored on exchanges and miners’ refusal to sell their coins is indicative that the benchmark cryptocurrency could resume its bull run soon.
Speculations making rounds in the crypto community states that the recent market crash links to President Joe Biden’s proposed capital gains tax plan. The latest market crash caused many traders to enter panic mode, as over $4 billion got liquidated in under 24 hours.
Nonetheless, some community players maintained a positive outlook for Bitcoin amid some upbeat data.
Data from CryptoQuant shows that the number of BTC stored on crypto exchanges is on a steady decline, which indicates that selling pressure around the cryptocurrency has decreased as investors continue to stock up on Bitcoin.
Glassnode confirmed this report, noting that the number of addresses receiving Bitcoin from exchanges has reached a three-year high of about 3.4 million.
Additionally, miners have resumed HODLing their newly-minted cryptos, further substantiating a bullish recovery. Recently, BTC miners dumped their holdings onto exchanges, which triggered a massive selloff over a short period.
Key BTC Levels to Watch — April 25
Bitcoin is having a hard time scaling the $50k psychological resistance, as bears keep the pressure. The primary cryptocurrency continues to trade along a bearish tripwire towards the $48,000 support.
However, a slight sideways pattern has emerged, which could help BTC break away from the bearish trendline and approach the $51,400 resistance.
Meanwhile, our resistance levels are at $50,000, $51,400, and $52,500, and our key support levels are at $49,000, $48,000, and $47,200.
Total Market Capitalization: $1.84 trillion
Bitcoin Market Capitalization: $926 billion
Bitcoin Dominance: 50.4%
Market Rank: #1
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