Marathon Digital’s $250M Bitcoin bet: Here’s everything to know!

• Marathon Digital announces an ambitious plan to further Bitcoin investment.
• Bitcoin supply reserve in all exchanges hits the lowest level since 2018.

As a seasoned crypto investor with more than a decade of experience under my belt, I’ve seen my fair share of market fluctuations. However, the latest news about Marathon Digital’s ambitious Bitcoin investment plan and the dwindling exchange supply since 2018 has me sitting up and taking notice.

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Marathon Digital, a prominent Bitcoin (BTC) mining company, intends to gather approximately $250 million to acquire additional Bitcoins.

Following a $100 million buy-in during July, Marathon currently owns approximately 20,000 Bitcoins. Lately, it has been observed that significant investors, often referred to as “whales,” have consistently built up their Bitcoin holdings over the last few months, indicating robust market faith.

As a researcher, I’ve noticed a consistent upward trend in accumulation indices, a phenomenon that appears to be bolstered by various metrics such as supply reserves.

The amount of Bitcoin held on all trading platforms has reached its minimum point since 2018, showing a substantial decrease from the beginning of this year.

It seems that institutions are gradually buying Bitcoin, probably due to their expectation of an upward trend in the market.

A decrease in the amount of Bitcoin available for purchase can be seen as a powerful sign that investors are becoming increasingly optimistic about its future prospects, suggesting rising confidence.

For this reason, this is the time to consider a bullish stance on BTC as the market shifts.

Liquidation levels 

Approximately $15 billion worth of Bitcoin short positions are expected to be closed when the price reaches around $72,000, as per Coinglass’s calculations.

A substantial amount of Bitcoin is being held or traded within the range of $70,000 to $72,000, indicating a potential change in the market trend due to large investors stockpiling Bitcoin for future profits.

Bitcoin opens another CME gap

As someone who has been closely following the cryptocurrency market for several years now, I have come to appreciate the significance of key events such as the creation of a new CME gap by Bitcoin. With my personal investment portfolio heavily weighted towards digital assets, I can’t help but feel a mix of excitement and caution whenever these gaps occur. In my experience, they often serve as turning points in the market’s trajectory. The recent close at $63K marks a local top, which is particularly noteworthy given that Bitcoin has just closed two big gaps it created earlier. I will be closely monitoring this development and adjusting my strategy accordingly, keeping in mind that the crypto market can be highly volatile and unpredictable.

Currently, there’s a fresh level of resistance at around $61K. Although gaps in price charts don’t always get filled, they frequently do so, suggesting potential price surges toward that gap, which could be indicative of an upward trend.

Bitcoin RSI on Fibonacci levels analysis

As an analyst, I observed that the 2-week Relative Strength Index (RSI) of Bitcoin reached its peak during the past two weeks, which is typically associated with cycle tops. However, delving deeper into the market trends, I found that the 3-week RSI provided a more comprehensive and clearer perspective on the prevailing market sentiment.

BTC’s RSI pattern now mirrors the 2016-2017 period when it aimed for new highs.

As a crypto investor, I noticed that the peak in March 2024 seems to be more substantial than previous ones. However, there’s a strong conviction that this isn’t the end of the bull market. Institutions are still accumulating, and it’s believed that once they finish, we might see an extension of the bull run for over a year.

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2024-08-13 11:04