Bitcoin Could Breakout if Bullish Momentum Is Strong Enough, Says Crypto Analytics Firm – But There’s a Catch

By The Daily Hodl September 01, 2023 In Bitcoin, Litecoin

Market intelligence platform IntoTheBlock says that new data shows Bitcoin (BTC) is primed for a sudden breakout.

IntoTheBlock says Bitcoin could easily retest the key psychological $30,000 level following a bullish event.

The firm’s thesis is based on the amount of buyers of Bitcoin at the price range between $27,345 and $30,000.

“Bitcoin is back in the spotlight as Grayscale emerges victorious from its SEC lawsuit. The next milestone? $30,000. Our on-chain data reveals that 6.2 million addresses acquired ~2.6 million BTC between the current price and $30,000. These ‘bubbles’ are significant and could burst two ways.”

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ImageSource: IntoTheBlock/X

IntoTheBlock says that approval of a Bitcoin exchange-traded fund (ETF) could spark strong bullish momentum sending the king crypto much higher. Some analysts believe the odds of approval have increased after a court ruled that the U.S. Securities and Exchange Commission (SEC) must reconsider its rejection of Grayscale’s application to launch a BTC ETF.

However, the firm warns that bearish sentiment could send Bitcoin abruptly downward if the buyers of BTC in the $27,000 to $30,000 range quickly sell to protect against losses.

Says IntoTheBlock,

“Bearish sentiment may trigger a rush to break even, adding to sell volume. However, if there is enough strong bullish momentum, for example, because of an ETF approval, Bitcoin could breeze through these roadblocks.”

Bitcoin is trading for $26,500 at time of writing, down 2.3% in the last 24 hours.

Next, IntoTheBlock notices a massive increase in long-term holders of the peer-to-peer payments network Litecoin (LTC).

“Long-term Litecoin holders are surging! Nearly 5 million addresses have held LTC for over a year, almost doubling the count from last year’s 2.55 million. A clear sign of confidence from holders despite market conditions.”

ImageSource: IntoTheBlock/X

Litecoin is trading for $65.92 at time of writing, down 1.7% in the last 24 hours.

IntoTheBlock also looks at which crypto projects have the most long-term holders.

At the top of the list is smart contract platform Ethereum (ETH) with 73.9 million, followed by Bitcoin at 33.6 million.

ETH-rival Cardano (ADA) is seeing a 170.4% increase in long-term holders for a total of 2.65 million, according to the firm.

Blockchain oracle Chainlink (LINK) stands out for a 3% decline in long-term holders in the past year.

ImageSource: IntoTheBlock/X

Generated Image: Midjourney

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