Bitcoin is within a bullish formation following gains from last week after spring, as seen on July 15 when prices broke above the 20-day moving average.
However, even with the optimism, cracks are beginning to form. Yesterday, on July 23, prices retracted, cooling off from over $67,500 to falling below the all-important support at $66,000.
If sellers double down by the close of today’s bar, reversing current gains, it will rapidly slow down the uptrend momentum, challenging the bulls of last week.
Bitcoin Exchange Activity Rising: Are Bulls In The Equation?
While Bitcoin remains generally resilient and within inches from all-time highs, analysts closely monitor events while maintaining a bullish bias. Taking to X, one analyst said exchange activity has been on an upward trajectory.
Over the past few days, the analyst said the Average Exchange Volume Flow (AEVF), used to gauge BTC trading volume across exchanges like Coinbase and Binance, is up 9%.
The analyst added that the growth in exchange activity suggests that the BTC market could be positioning for a major market recovery. However, it must surpass the average annual volume threshold for this to happen.
This means the AEVF indicator should grow by another 11%, pushing it to over 45%. In the last bull run, when Bitcoin soared to $73,800, the AEVF indicator rose to as high as 45%.
Even as the uptrend appears labored, other market data shows that whales, especially those holding at least 10,000 BTC, have aggressively accumulated over the past week.
Their buying decision coincides with the expansion through July 15 when prices broke above key resistance levels, significantly $62,500, rising to $68,000 over the weekend.
New BTC Whales Have Key Support At $64,000
For now, the average purchase price for new whales, the analyst noted, is around $64,000. As such, provided prices trend above this line, the sentiment remains bullish, and large holders won’t be able to reconsider their decision.
As prices gyrate with hints that buyers are in play, accumulating on dips, it is also imperative for traders to watch out how they react at critical resistance levels.
Looking at the daily chart, Bitcoin must reject lower prices below $66,000 and find the momentum to crack $70,000 and $72,000. These two levels are crucial reaction points that have formed local liquidation or loading zones in the past.
