Bitcoin rises fastest since October 2021 as supply continues to fall

Bitcoin (BTC) has had a very strong month. The price is up more than 20% in July and that is the strongest increase since October 2021, shortly before bitcoin’s all time high (ATH) of $69,000.

Market sentiment is therefore starting to become more positive. However, bitcoin is still almost 66% below its ATH and the market is mainly talking about a bear market or relief rally and not yet about one bull market.

Bitcoin price rises 20% in July, but falls 1.2% today

The bitcoin price was still just below $19,000 on July 1, and peaked at $22,000 a week later. Bitcoin was then rejected here and fell back to $19,000, but then surged again and then peaked around $24,200 on July 20.

The price then fell again quickly, but this time found enough support at the $21,000 mark and then resumed its rally. Last Friday, bitcoin knocked back at $24,000, but the resistance was still too great.

However, bitcoin broke through this briefly yesterday afternoon and even peaked at $24,600, the highest price since June 13. After that, however, bitcoin quickly plummeted again and it failed to recapture $23,800 this morning.

The BTC price currently stands at $23,700 on KuCoin and $23,200 on Bitvavo. The BTC rate is therefore 1.2% in the minus today, but 5% in the plus this week and 20% in the plus this month.

Bitcoin and the 200-week moving average

The 200-week moving average serves as a key resistance level for the first time in the price’s history, as analyst Caleb Franzen points out below. The 200-week simple moving average (SMA) is currently around $22,800 and the 200-week exponential moving average (EMA) around $26,750. If the price breaks through this, turning this area into support, it could be a bullish be a sign.

Then the BTC price may first have to hold above $23,200, as Decentrader indicates below. That would be a higher low and that may also be a bullish sign. If that doesn’t work, a lot of support should be around $22,200 and $22,500 by now. However, that does not mean that a decline below is excluded.

Bitcoin on exchanges continues to decline

Meanwhile, the amount of bitcoins on exchanges continues to decrease. Since March 2020, BTC exchange balances have fallen by 4.6%, reports analytics firm Glassnode. The exchanges now hold only 12.6% of the circulating supply, or 2.4 million BTC. it is a sign that more and more BTC is being held by investors and that is bullish for the long term.

In addition, analyst On-Chain College reports that the number of addresses with at least 0.01 BTC also continues to climb. This is now above 10.5 million addresses.

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