Bitcoin Wallets Holding More Than $1 Million in BTC See Sharp Increase in 2023
Bitcoin (BTC) has experienced a significant increase in sentiment this year, with its price rising over 120% year-to-date. This surge in buying has resulted in a sharp increase in the number of crypto wallets holding more than $1 million in Bitcoin, according to data from BitInfoCharts. The number of such wallets has risen from 23,795 on January 1 to 81,925 currently.
However, despite the positive momentum, Bitcoin could face headwinds in the near term as investors digest macroeconomic data and events. The release of the Consumer Price Index data on November 14, the Producer Price Index data on November 15, and the November 17 deadline to avoid a partial United States government shutdown could lead to short-term volatility in the market.
Short-Term Pullback Expected as Traders Anticipate Long-Term Rally
A short-term pullback in the market is considered healthy for the long-term trend. Many analysts anticipate that Bitcoin will rally in 2024, driven by the expectations of a spot Bitcoin exchange-traded fund finally receiving regulatory approval. Traders are likely to view any pullback as a buying opportunity.
S&P 500 Index Price Analysis
The S&P 500 Index (SPX) has shown bullish signs, with the bulls buying on every minor dip. The 20-day exponential moving average has started to turn up, indicating that the bulls are in command. A break and close above the downtrend line will clear the path for a rally to 4,512. However, the bears are likely to fiercely protect the downtrend line and may try to drag the price below the neckline.
U.S. Dollar Index Price Analysis
The U.S. Dollar Index (DXY) has seen a recovery after tumbling below the descending channel pattern. If the price turns down sharply from the current level, it will suggest negative sentiment and could pull the price down to the 38.2% Fibonacci retracement level. On the other hand, if bulls propel the price above the 20-day EMA, the index could rise to the resistance line of the descending channel pattern.
Bitcoin Price Analysis
Bitcoin has been holding near the channel’s resistance line, but the bulls have failed to start the next leg of the uptrend, indicating a drying up of demand at higher levels. If the price re-enters inside the channel, it may suggest that the breakout on November 9 was a bull trap. Short-term traders may book profits, pulling the price toward the 20-day EMA. The overbought level on the RSI also warns of a possible correction or consolidation in the near term.
Ether Price Analysis
Ether (ETH) has rebounded off the psychological level at $2,000, indicating that the bulls are trying to flip the level into support. Buyers will make one more attempt to overcome the obstacle at $2,200. If they succeed, the ETH/USDT pair could pick up momentum and soar toward $3,000, as there is no major resistance level in between. However, if the price turns down and breaks below $2,000, the short-term trend may turn negative.
BNB Price Analysis
BNB (BNB) has been consolidating between $240 and $258, with the RSI suggesting an advantage to buyers. If the price rebounds off the 20-day EMA, the bulls will try to propel the BNB/USDT pair to $265. On the downside, the bears will have to yank the price below $235 to indicate a deeper correction.
XRP Price Analysis
XRP (XRP) has been trading below $0.67, but the bulls have not allowed the price to skid below the 20-day EMA. The tight consolidation near $0.67 enhances the prospects of a break above it, with the potential for a jump to $0.74. However, if the price turns down and breaks below the 20-day EMA, it will indicate that the bulls have given up.
Solana Price Analysis
Solana (SOL) saw a sharp rally in the past few days, pushing the RSI above 88 and indicating an overextended rally. If the price turns down from the current level, the SOL/USDT pair could slide to $48. On the contrary, if the $48 level gives way, it will suggest that traders are rushing to the exit.
Cardano Price Analysis
Cardano (ADA) broke through the barrier at $0.38, but the bulls failed to build upon the recovery. Sellers will try to tug the price to the 20-day EMA. If bulls want to maintain their hold, they will have to guard the 20-day EMA with vigor. A strong rebound off this level will increase the likelihood of a rally above $0.38.
Dogecoin Price Analysis
Dogecoin (DOGE) rose above $0.08 but failed to sustain the higher levels. The failure to maintain above the overhead hurdle has started a pullback toward the 20-day EMA. If buyers manage to defend this level, the DOGE/USDT pair could rally to $0.08. However, a break and close below the 20-day EMA will signal that the pair may stay range-bound for some time.
Chainlink Price Analysis
Chainlink (LINK) saw a solid rally in the past few days, but the RSI indicates that the rally was overextended in the near term. Short-term traders may book profits, and the LINK/USDT pair could pullback to the 38.2% Fibonacci retracement level.