Bitcoin holds above $61,000 as ETF inflows resume

US spot Bitcoin ETFs registered slight inflows on Monday.
On-chain data shows that BTC's daily active addresses increased, signaling greater blockchain usage.
German Government transferred 1,500 BTC, valued at $94.7 million, out of its wallet on Monday.

Bitcoin (BTC) is encountering resistance near the $64,000 level, with on-chain data indicating a rise in daily active addresses, slight inflows into US spot Bitcoin ETFs, and the German Government's transfer of 1,500 BTC valued at $94.7 million potentially triggering a minor correction in BTC price before an anticipated upward rally in the coming days.

Daily digest market movers: Bitcoin spot ETFs saw a mild inflow

According to data from Lookonchain, 9 ETFs added 526 BTC worth $33 million on July 1, continuing a net inflow for five consecutive days.
Blackrock has added 1,366 BTC worth $85.9 million and currently holds 306,979 BTC, valued at $19.3 billion. Grayscale, Invesco, and Fidelity decreased by 198, 201, and 437 BTC, respectively. Collectively, the nine spot BTC ETFs hold reserves amounting to $54.3 billion in Bitcoin.

July 1 Update:

9 ETFs added 526 $BTC(+$33M).#Blackrock added 1,366 $BTC(+$85.9M) and currently holds 306,979 $BTC($19.3B).#Grayscale decreased 198 $BTC(-$12.4M) and currently holds 275,758 $BTC($17.34B).https://t.co/xXLHLZXSyV pic.twitter.com/b5uF2c7ioH
— Lookonchain (@lookonchain) July 1, 2024

In the last hours, the German Government transferred 1,500 BTC, valued at $94.7 million, from its wallet. Out of this, 400 BTC worth $25.3 million were transferred to Coinbase, Bitstamp and Kraken exchanges, data from Lookonchain shows. Over the past week, German authorities have moved 1,700 BTC worth $110.88 million to Coinbase, Bitstamp, and Kraken. This significant transfer activity may have fueled FUD (Fear, Uncertainty, Doubt) among traders.

The German Government transferred 1,500 $BTC($94.7M) out again in the past 20 minutes, of which 400 $BTC($25.3M) was transferred to #Bitstamp, #Coinbase and #Kraken.

German Government currently holds 44,692 $BTC($2.82B).https://t.co/6V5KFoyQa7 pic.twitter.com/35yMQIcMA8
— Lookonchain (@lookonchain) July 1, 2024

Santiment's Daily Active Addresses index helps track network activity over time. A rise in the metric signals greater blockchain usage, while declining addresses point to lower demand for the network.
In BTC's case, Daily Active Addresses have risen from 666,020 on June 30 to 894,980 on July 1. This 34.3% rise is the highest since mid-April and indicates that demand for BTC's blockchain usage is increasing, which could eventually propel a rise in Bitcoin's price.

Bitcoin Daily Active Addresses chart

On Monday, Whalefin revealed that its parent company, Amber Japan, would rebrand as S.BLOX after its Sony unit Quetta Web acquisition in August 2023. The announcement emphasized plans to leverage collaboration across Sony Group businesses to innovate crypto asset trading services, alongside Sony's intent to relaunch the crypto exchange with a new app, as stated in a PR Times release.

Sony plans to restart Whalefin with a new app and user interface. @Sony bought the crypto exchange from Amber Group last year.https://t.co/FrAA7Y8045
— CoinDesk (@CoinDesk) July 1, 2024

Technical analysis: BTC faces resistance around the $64,000 level

Bitcoin's price broke above the falling wedge pattern on Monday, but it was rejected by the daily resistance level at $63,956 and trades below it at $62,916 on Tuesday.

If BTC's price closes above the $63,956 daily resistance level, it could rise 5% to retest its next weekly resistance at $67,147.

The Relative Strength Index (RSI) and the Awesome Oscillator in the daily chart are below their neutral levels of 50 and zero. If bulls are indeed returning, then both momentum indicators must regain their positions above their respective neutral levels.

If the bulls are aggressive and the overall crypto market outlook is positive, BTC could extend an additional rally of 6% to revisit its weekly resistance at $71,280.

BTC/USDT daily chart

However, if BTC closes below the $58,375 level and forms a lower low in the daily time frame, it could indicate that bearish sentiment persists. Such a development may trigger a 3% decline in Bitcoin's price, to revisit its low of $56,522 from May 1.

Cryptocurrency metrics FAQs

What is circulating supply?

The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.

What is market capitalization?

Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.

What is trading volume?

Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.

What is funding rate?

Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.

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