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BTC price motion remains frustratingly sluggish while altcoins, lead by Ether, seize the opportunity to put in a strong performance.
Bitcoin (BTC) returned to weekly lows on Wednesday, as the new month began with a whimper rather than a bang.
Bitcoin lingers in “price stability”
Data from TradingView showed BTC/USD hitting lows of $46,530 on Bitstamp overnight, its lowest since Friday.
With $50,000 out of reach, price action has continued to deviate “significantly” from good on-chain measures and fundamentals.
According to Willy Woo, an expert who shared similar results this week, a substantial pool of support at current levels is likely to keep Bitcoin where it is. The cost base of over 1.65 million BTC is between $45,000 and $50,000.
“Bitcoin approaching another region of notable price stability,” he told Twitter followers Wednesday.
“Short term technicals are weak while on-chain, investors are in accumulation. All the makings of a volatility squeeze. Breaking 50 likely a fast track to 60.”
The area around $51,000, which is still active as a “final hurdle” resistance level for Bitcoin this week, is largely expected to disintegrate in the mid-term, but the precise timing of such an impulse move is unknown.
On the day, investors appeared to be ready to go, with reserves on major exchange Coinbase at their lowest level since December 2017 — 700,000 BTC — and around $20 billion in stablecoins waiting across centralised trading platforms ready for conversion.
“After a period of moderate BTC inflows following the May Sell-off, Coinbase has seen a large outflow of coins,” on-chain analytics firm Glassnode commented on the data.
Ether leads altcoin boost
For Michaël van de Poppe, however, it was business as usual for a BTC consolidation.
“Yep, Bitcoin is following this path,” he summarized.
“Overall; pretty normal consolidation resulting in altcoins breaking out heavily with Ethereum as the first one breaking to new highs.”
ETH/USD surpassed $3,500 overnight, reaching its highest level in three months against the US dollar and Bitcoin. Its cryptocurrency market capitalisation supremacy increased to 20.4 percent, while Bitcoin’s remained constant at 44 percent.