Bitcoin (BTC) continues to hold strong above $34,000 despite significant macro, expiration, and end-of-month pressures. As investors try to understand what’s next for the largest cryptocurrency in the midst of the ongoing rally, the question of whether the rally will continue remains a major concern. After a 30% increase this month, BTC has been trading mostly between $34,100 and $34,900 throughout the week, but CryptoQuant’s research leader Julio Monero has issued a warning of a potential decline.
Monero: Bitcoin’s Price Could Drop
Julio Monero, the research leader at CryptoQuant, pointed to two important on-chain metrics that indicate a pause in the rise following Bitcoin’s recent price rally, in a statement on his personal account on social media platform X.
Monero noted that short-term Bitcoin investors have been selling Bitcoin with a profit level of 6%, the highest since April. At this point, the pullback following the price reaching its highest level in a month at around $35,200 this week could be a result of short-term investors taking profits.
Furthermore, Bitcoin whales have been spending at the highest level on a daily timeframe since June, while larger whales are moving their BTC holdings. Whale Alert, a platform that detects major movements in blockchains and shares them publicly, reported significant BTC transfers to Coinbase and Binance exchanges following the rapid increase in the price of BTC above $35,000.
What’s Next for BTC?
Crypto analyst Skew reported that open interest (OI) in Bitcoin is extremely flat and there hasn’t been a significant increase yet. Another crypto analyst, Crypto Tony, expects BTC to touch the resistance around $36,000 and then drop in price.
BTC has seen a 15% increase this week and is currently trading around $34,100. The lowest and highest price levels in the last 24 hours were $33,416 and $34,238, respectively. Additionally, the trading volume has decreased by 18% in the last 24 hours.
