Bitcoin Slides to $29k – What’s Next?

After a tough fight between buyers and sellers, Bitcoin has finally broken below the trendline and has reached the $29,000 level within an hour. The price action of Bitcoin had already made it clear that the price will potentially break below because the price was continuously struggling to maintain the $30,200 support.

The following Bitcoin news may give an idea about the upcoming price direction of Bitcoin.

Key Takeaways: –

• A dormant Bitcoin wallet that had been inactive since 2012 transferred $31 million worth of BTC to a new wallet, possibly to enhance privacy ahead of potential regulations.
• UK-based online carpet retailer, Flooring Hut, has adopted Bitcoin by adding BTC tokens to its reserves, aiming to leverage cryptocurrency’s potential amid high inflation.
• GlassNode’s data shows that the number of long-term Bitcoin holders has slightly increased, with 75% of Bitcoin’s circulating supply under the control of holders who have held the asset for at least 155 days.

Shockwaves by a Dormant Crypto Wallet

A dormant Bitcoin wallet transferred $31 million worth of Bitcoin tokens (1,037 BTC) to a fresh wallet. This wallet acquired BTC in 2012 and didn’t show any activity since then. However, the wallet has emptied its entire balance after 11 years. In November 2021, the assets of this wallet peaked at $71.6 million.

Some other big wallets have also made some mysterious transactions recently. The experts claim that some wallet owners are trying to enhance their privacy before any regulations are designed. However, it’s worth noting that more than 55% of BTC tokens haven’t been moved for more than two years.

UK Carpet Retailer to Adopt Bitcoin Standard

Bitcoin’s current price movement isn’t satisfying enough for most investors. However, some positive news is still keeping the hopes higher. Flooring Hut, a UK-based online carpet and flooring retailer, has recently sent some positive vibes by adding BTC tokens to its reserves. Paul Brewster, the CEO of the company says that cryptocurrency appears to be a more lucrative option than keeping the funds in a bank account.

The company is going to keep its BTC tokens in cold storage to avoid certain risks. Currently, the company holds around 3.3 BTC, valued at £75,105. Flooring Hut is aimed at getting a competitive advantage by taking such a bold step amid high inflation. Currently, the company accepts traditional payment options like Visa, Mastercard, and Paypal.

However, they’re also planning to integrate Bitcoin Lightning Network into their payment system. The company is willing to take advantage of the lower fees of the lightning network.

Bitcoin Weekly News by GlassNode

GlassNode has shared a recent update about Bitcoin holders saying that the number of long-term holders has slightly increased during the recent month. More than 75% of Bitcoin’s circulating supply is now under the control of the holders who have held Bitcoin for at least 155 days.

These wallets are holding a total of 14.52 million BTC tokens. It shows that mature investors prefer holding the tokens for a long time. Similarly, selling pressure has been significantly absorbed recently because more illiquid entities are now joining the race.

Former SEC Official’s Warning About Ripple (XRP)

John Reed Stark, the former official at the SEO, has expressed his concerns about the SEC v.Ripple case saying that the decision has several problems in it and it will potentially reverse. The court has made a separate ruling for each category of XRP offering including programmatic sales, institutional sales, and other sales.

The problematic part is that the retail investors don’t get the SEC protection under this ruling while the institutional investors have the full protection. Stark thinks that the district court’s ruling about programmatic and other sales will potentially be overturned during the appeal. Stark fears that the programmatic buyer tokens will emerge significantly on unregulated crypto-trading platforms if the SEC couldn’t win the appeal.

Stark finds the Ripple judgment unjust because the same token is being considered a security in some situations but not in others. Stark suggests that the judge may have erred in interpreting the law.

Bitcoin Weekly Technical Analysis

Bitcoin’s recent price movement has many similarities with the price movement that was observed during the second half of the last year. The chart shows that the price traded in a range followed by a huge selling candle. Current price movement also shows a price range followed by a huge buying candle.

After the big selling candle, the price entered a very tight range followed by a bullish candle. The current situation is also showing a tight price range for the past four weeks. The RSI indicator also shows the divergence in both situations. Now, if a huge bearish candle is formed after this tight range, Bitcoin’s price may drop sharply.

And it may eventually reach the most recent support which is around $20,800 to $21,700. This week and the next week are going to be very important. Therefore, investors must carefully observe the price action before opening a new position.

Conclusion

Bitcoin’s recent slide to $29,000 has raised concerns amidst market fluctuations. Positive developments, such as the adoption by Flooring Hut and increased long-term holders, offer hope. However, the SEC v. Ripple case and technical patterns warrant caution. The cryptocurrency market remains volatile, demanding careful observation and informed decisions from investors.

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