Home Business Bitcoin shoots back to $30,000 as whales go giga-long

Bitcoin shoots back to $30,000 as whales go giga-long

Bitcoin whales do something different from the rest, what are they up to?

Bitcoin (BTC) briefly fell to $28,700 on Monday but then quickly recovered above $29,000. Yesterday afternoon, bitcoin started to surge sharply, leading to a surge just above $30,200 last night. Bitcoin then fell back to $29,750 and is currently looking for support here.

Bitcoin briefly fell to $29,600 but is rallying to $29,796 on Binance and $27,126 on Bitvavo at the time of writing. This means that the bitcoin price is up 2.2% today. Total market cap is $580 billion and dominance is 48.9%. The Fear & Greed Index is 50 (Neutral).

Is volatility returning?

We’ve written a number of times lately that Bitcoin’s volatility has dropped to historically low levels, partly due to low trading volumes on exchanges. According to CCData, the Bitcoin Volatility Index (BVIN) even one all-time low reached 36.3 on August 6.

Of course, that was a few days ago and with this surge, the return of volatility could begin.

Inflation figures could cause a stir tomorrow

For example, the American consumer price index (CPI) will be published tomorrow. Inflation figures are likely to rise slightly this time, which could cause fear in the financial markets.

That doesn’t sound good for Bitcoin either. However, Bitcoin has recently been so weakly correlated with other markets that it is becoming increasingly difficult to estimate how the BTC price will react to macroeconomic developments.

Bitcoin mining difficulty is increasing today

First, today we are witnessing another surge in so-called bitcoin mining difficulty, or difficulty. According to BTC.com, the difficulty level will be adjusted in about 5 hours. However, this time it’s estimated to be just 0.3%, so it’s unlikely to make a big splash.

Bitcoin whales seem to be eye-catching

Still, with yesterday’s surge, we see some positive developments. Almost $400 million worth of bitcoin was transferred whales, Major investors, including those from stock exchanges, reports analyst James van Straten.

Cryptoquant founder Ki Young Ju reports that bitcoin whales even took “giga-long” positions at $29,000. This indicates a certain trust from these large investors, but it can also lead to a so-called long press Outcome when other factors are not on their side.

Bitcoin price resumes the fight at $30,000

According to analyst Mortensen Bach, a surprise in inflation numbers could potentially propel Bitcoin higher, eventually breaking through $30,000.

Analyst Rekt Capital remains a little more cautious. What matters to the analyst is that the price closes above $29,250 this week to show that selling pressure is easing by around $30,000.

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