• Bitcoin (BTC) dropped below the $30,000 support level to around $29,000 early in the week.
• On-chain data suggests positive developments despite its grim outlook.
• The U.S. Federal Reserve’s rate-hike campaign to be announced today could cause high volatility in the crypto market.
On-Chain Data Suggests Positive Developments
The number of Bitcoin (BTC) held on cryptocurrency exchanges is currently at 1.17 million – the lowest since November 2018 – suggesting that more and more BTC are being moved into private hands. Furthermore, Glassnode data shows a new all-time high of 14.52 million BTC held by long-term investors – equivalent to 75% of the total supply – indicating that HODLing is the preferred market strategy amongst mature investors. Additionally, daily wallet address creation has increased over time, which is seen as a positive indicator for network activity growth.
Unexpected Volatility Expected
As investors await the announcement from the U.S Federal Reserve’s rate-decision meeting today, Bitcoin (BTC) has stalled around $29,200 in Asia during early trading hours today. Any hawkish tone from this meeting could cause further downward pressure on BTC’s price and result in higher volatility across the crypto market overall. The current resistance level at around $31,000 is proving difficult to break above since April’s peak; however a successful breach could open up possibilities for an increase up to $40,000 in value again according to technical analysis predictions.
What Does This Mean?
The latest on-chain data suggest some potential development for Bitcoin (BTC). However these gains are still dependent on whether it can break through its current resistance level of $31,000 or not; if it can then there are possibilities for significant increases in value again but any hawkish tones from today’s Federal Reserve meeting could easily lead to further declines and higher volatility across the entire crypto market instead .
Today marks an important day as investors await news from the U.S Federal Reserve’s rate decision meeting later this afternoon with much anticipation about how this will affect Bitcoin’s price going forward and what volatility may follow afterwards . On-chain data do suggest some positive signs but ultimately only time will tell what happens next .