Did they save the Bitcoin market?

At the time of writing, bitcoin is moving sideways, absorbing the sell-off from the past week. Although there are some bulls, the arrangement of candles on the daily chart indicates weakness.

This forecast, at least from a technical point of view, holds as long as prices tend below the round number of $60,000 and the settlement level around $66,000.

Binance bought the bitcoin dip

Amid the recovery, one analyst, pointing out interesting on-chain data, x.com/AxelAdlerJr/status/1811302383974003083″ target=”_blank” rel=”nofollow”>observed that when prices fell last week, some anonymous exchanges were picking up the slack. It is now emerging that Binance, the world’s largest exchange by customer count, was actively accumulating.

CryptoQuant data shows that Binance increased its reserves by 41,000 btc during the latest bearish streak, when prices corrected from $72,000. Buying on dips is strategic, considering the exchange’s obligation, especially for users looking to convert other tokens for btc on the fly instantly.

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During this time, Ki Young Ju also x.com/ki_young_ju/status/1811019602907824265″ target=”_blank” rel=”nofollow”>noted that “permanent holders” — entities that tend to HODL and not move coins — have been accumulating. These addresses, excluding issuers of spot bitcoin exchange-traded funds (ETFs), exchanges like Binance and Coinbase, or miners, added 85,000 btc in the past month. During this time, spot bitcoin ETF issuers decreased their holdings by 16,000 btc.

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While some entities rushed to exit, others saw this as an opportunity to double their efforts and take advantage of every setback. Their participation has helped to stabilise prices, improving sentiment, which was shattered after last week's fall to $53,500.

German government dumps more btc

Even as the “diamond hands” buy on the dip, the German government does not stop; looking to Arkham Intelligence x.com/ArkhamIntel/status/1811376763554902085″ target=”_blank” rel=”nofollow”>dataToday, July 11, they transferred another 3,250 btc, in addition to the 5,627 sent previously, to multiple market makers and exchanges, including Bitstamp.

Their decision to sell is putting further pressure on the currency, slowing the uptrend. Even amid sustained outflows of funds from the German government, a Coingecko survey crypto-market-sentiment” target=”_blank” rel=”nofollow”>sample that most respondents, especially investors, are optimistic.

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Meanwhile, traders and speculators have mixed feelings. While 39% of traders are optimistic and expect prices to recover, another 33.5% of respondents are pessimistic. The majority of speculators, or 42.4% of respondents, are pessimistic and expect prices to continue to fall.

Featured image by DALLE, chart by TradingView