Bitcoin (BTC) came back to life later on July 9 after a whale-induced price dip failed to hold the market down for much more than 24 hours.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Bitcoin price action returns $33,000 support
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD jumping 2% in an hour on Friday, hitting local highs of $33,700 on Bitstamp.
The previous day had been marked by a trip lower and a test of $32,000 support, something which had come on the back of sudden short selling by an entity on Bitfinex.
With $33,000 support now back in play, however, traders were once again hopeful that existing short-term theories could still play out.
“Bitcoin is still holding a critical level of support and potentially making a new higher low here,” Michaël van de Poppe summarized in his latest update.
Van de Poppe had eyed a potential run to as high as $39,000 should Bitcoin break through the start of a resistance band at $35,500.
We’re doing it #Bitcoin https://t.co/IwbKuBoXGv
— jack (@jack) July 8, 2021
The rebound followed an announcement payment gateway Square, which confirmed that he would be developing a “mainstream” cryptocurrency hardware wallet.
“We’re doing it,” Twitter and Square CEO Jack Dorsey responded to a post from the latter’s hardware lead, Jesse Dorogusker.
Dorogusker had also said that the plans would include a “service to make bitcoin custody more mainstream,” with further details still outstanding.
Woo: “Whales are scooping”
As Cointelegraph reported, industry researchers had already flagged new bullish tendencies across on-chain metrics in the latter part of the week.
Related: Bitcoin price will likely shrug off $530M GBTC unlock in July — Analysis
These showed, among other things, record numbers of new Bitcoin network entities, these now topping 50,000 daily.
Whales, for their part, were also keen to scoop up the supply, a theory supported by popular statistician, Willy Woo.
“As price grinds sideways-bearish, coins are being scooped off the exchanges at a very bullish rate,” he told Twitter followers on Thursday, alongside a chart of net flows from exchanges.
“PS. The latest sizing of withdrawals vs deposits are at local highs at levels that signal a bottom, whales are scooping.”
Bitcoin exchange net flows vs. BTC/USD chart. Source: Willy Woo/ Twitter