Bitcoin is in pullback mode heading into the weekend as bulls take a breather.
After spending most of the day in negative territory, cryptocurrencies made a late surge on Friday with bitcoin hitting its highest level since mid-May. Bitcoin is currently trading above $41,000 at press time and is up more than 15% over the past week. Bullish sentiment has returned after a sharp sell-off in May and two months of consolidation above the $30,000 support level.
Some analysts are optimistic and expect buyers to remain active above the 50-day moving average, which is above $34,000 now.
“We have been talking about the market having lower liquidity during the summer for a few weeks now and we think this helps explain the sharp price action we saw that triggered the short squeeze of nearly $1 billion in futures liquidations,” David Grider, a strategist at FundStrat, wrote in a Thursday newsletter.
Grider stated that bitcoin’s spike could reflect a flight to safety from Chinese investors looking to “get out at any cost,” given the recent sell-off in Asian equities. “Bitcoin could have been trading as a proxy tool for investors looking for a hedge,” Grider wrote
Bitcoin active entities
Entities refer to “a cluster of addresses that are controlled by the same network entity and are estimated through advanced heuristics and Glassnode’s proprietary clustering algorithms,” according to Glassnode. Active entities include those active either as a sender or receiver.