After the strong performance on Wednesday, the cryptocurrency market remained stable through the evening. Bitcoin touched an intraday high of $23,578.65 while Ethereum surged to $1,678.10. This momentum is changing direction with serious news like Michael Saylor’s resignation and Solana hack. Let’s see what the experts are waiting for…
Will Solana hack affect Bitcoin and altcoins?
Hackers dominated the cryptocurrency market this week. On Tuesday, the 9th largest cryptocurrency Solana (SOL) lost thousands of wallets to hackers. On the same day, $190 million was stolen from Coinbase-backed cryptocurrency bridge Nomad. GlobalBlock analyst Marcus Sotiriou says Bitcoin is showing strength despite these attacks.
After an investigation by developers, ecosystem teams, and security auditors, it appears affected addresses were at one point created, imported, or used in Slope mobile wallet applications. 1/2
— Solana Status (@SolanaStatus) August 3, 2022
Sotiriou pointed to CoinShares data, which indicates that Bitcoin-focused funds saw a total inflow of $85 million last week, and short Bitcoin funds saw an outflow of $2.6 million. The analyst says this is the first week of launch for the short Bitcoin product after a 5-week inflow:
Since these funds are often bought by institutions and high net worth individuals, this is a sign that smart money is very interested in buying crypto at these prices.
Edward Moya says Bitcoin and altcoin market needs catalysts
Senior OANDA analyst Edward Moya says the market needs crypto-specific factors to recover. The seasoned analyst adds that the news cycle is not positive for Bitcoin:
Bitcoin needs a crypto-specific catalyst to trigger a meaningful move above the $24,700 level. The news was not positive for crypto as wallets were hacked with Solana and Nomad, an important bridge protocol, was exposed to a vulnerability and lost almost $200 million.
Update: We are working around the clock to address the situation and have notified law enforcement and retained leading firms for blockchain intelligence and forensics. Our goal is to identify the accounts involved and to trace and recover the funds.
1/2
— Nomad (⤭⛓🏛) (@nomadxyz_) August 2, 2022
Justin Bennett says $23,450 is critical
On the other hand, popular cryptocurrency analyst Justin Bennett also updated his Bitcoin analysis. Bennet tweeted that Bitcoin needs to retrace $23,450 to open higher prices.
Gm legends! ☕️
So far, $BTC is holding above $23,000 support on a daily closing basis.
But a reclaim of $23,450 is needed to open up higher prices.
Chop chop. 🔪#Bitcoin pic.twitter.com/iw0WqFrJ3v
— Justin Bennett (@JustinBennettFX) August 3, 2022
Ki Young Ju draws attention to awakening Bitcoin whales
CryptoQuant CEO Ki Young Ju discussed the miner sales in May and June. He said that early investors in Bitcoin tend to be visionaries, miners or criminals when accounting for a whale transaction in late July. Ki chose a transaction on July 20 that moved 1,100 BTC worth approximately $25.29 million 8 years later. CryptoQuant CEO shared a note saying that cryptocurrencies belong to retired miner “Ghash”:
These coins have not yet been sent to clearing addresses. In other words, there is currently no selling pressure emerging from this Blockchain activity.
#Bitcoin Early Investors:
1/ Visionaries
2/ Miners
3/ CriminalsStill many dirty old whales who are related to drugs, gambling, money laundering, hacking, etc. Fortunately, the recent old whale move was from a retired miner.https://t.co/fm8q5IBo7f
— Ki Young Ju (@ki_young_ju) August 3, 2022
CryptoQuant specifically suspects that the coins are sent to a custodian, as the recipient address type can be used by multiple digital signatures (P2SH).
On the other hand, on-chain data source Santiment noted that the supply of Ethereum at top exchange addresses has increased as investors put their holdings on major exchanges during the 2022 price drop.
🐳 #Ethereum has seen its supply held by top exchange addresses rise, which makes sense with traders dumping their holdings on to large exchanges during the 2022 slide. Watch for a decline in top $ETH exchange address holdings as a #bullish signal. https://t.co/NPq4J018bn pic.twitter.com/Y9Q1vMfn14
— Santiment (@santimentfeed) August 3, 2022
Kitco senior market analyst Jim Wyckoff says the recovery in recent months has been “barely”. However, while Bitcoin’s trading volume is falling, Wyckoff comments that “the bulls need to continue their uptrend and show strength soon.” But now is not the time to be complacent. The price to the expert comes alive that will fix the trend.
Crypto Tony briefed on support and resistance levels on Bitcoin chart
The Twitter analyst has identified the main support and resistance levels for Bitcoin (BTC) that traders should pay attention to. According to the expert, $ 22,650 will be an ideal level, especially for short positions.
Keep it simple this morning on #Bitcoin ..
– Long above resistance at $23,500
– Short below support at $22,650 pic.twitter.com/onXXRvdXx8— Crypto Tony (@CryptoTony__) August 3, 2022
The positive gains over the past six weeks are a welcome sign for crypto investors. However, experienced traders know that the market is not out of control yet.
Rekt Capital references past bear markets
The veteran Twitter analyst offered a historical perspective on when BTC bottoming could occur. According to the expert, this indicates that the low will occur in the 4th quarter of 2022.
In 2015, #BTC bottomed 547 days before the Halving
In 2018, $BTC bottomed 517 days before the Halving (discount March 2020 crash)
If Bitcoin is going to bottom 517-547 days before the upcoming April 2024 Halving…
Then the bottom will occur in Q4 this year#Crypto #Bitcoin
— Rekt Capital (@rektcapital) August 2, 2022
