BTC Retraced to $27K in Reaction to Bitcoin Pizza Day

Bitcoin surged almost 2% right after Bitcoin pizza day as many investors moved into the BTC space.

The trading volume has increased over two folds in just 4 days after BTC traded previously near the $26K boundary since Saturday. The Bitcoin Pizza Day surrounded the market with a storm on Tuesday after BTC sees an uptick after the Monday consolidation. 

For those who don’t know what Bitcoin Pizza Day is ー Every year on May 22, Bitcoin Pizza Day is observed. The day was named after Laszlo Hanyecz, who used 10,000 bitcoin to buy two Papa John's pizzas in 2010, in the first widely publicised bitcoin transaction.

However, even after the huge Bitcoin pizza day celebration, Bitcoin seemed a bit tight as Bitcoin has traded in extremely critical zones this week.

Bitcoin Volume Fluctuates to Extreme Light Zones: Glassnode

This week, the Bitcoin market has stabilised, with a low of $26.6k and a high of $27.5k trading inside a rather small 3.4% price range. In reality, this has been one of the narrowest trading ranges in recent years, with the most recent examples being the 2023 yearly open and July 2020 after the COVID sell-off recovery.

This is in addition to extremely low on-chain volume, with aggregate, entity-adjusted, and exchange-related flows continuing at cyclical lows. Meanwhile, huge portions of the currency supply remain in investor wallets, with some major age bands reaching all-time highs.

Source: Glassnode

Transaction counts for Bitcoin have hit record highs, owing primarily to ordinals, inscriptions, and BRC-20 tokens. However, ordinals are frequently transmitted along with a tiny volume of BTC (typically approximately 10k sats = 0.0001 BTC) in these types of transactions.

Taking a look at the Transfer Volume settled by the Bitcoin network during the previous three years. According to Glassnode, overall economic throughput has fallen by 85.5% since early 2021, from a cycle peak of $13.1B to a cycle low of $1.9B. Transfer volumes have increased marginally in 2023, but remain near cycle lows of $1.9B to $4.4B.

Let’s see how Bitcoin Price moved after trading with the tight volume bandwidth this week.

Bitcoin Price Analysis

Bitcoin (BTC) is currently trading at $27,301.13, with a 24-hour trading volume of $13,539,390,353. This is a 1.72% increase in the previous 24 hours and a 0.78% increase in the last 7 days. Bitcoin has a market worth of $529,131,352,106 and a circulating supply of 19 million BTC.

Bitcoin is suffering from a lack of a bullish catalyst, with some worried that the US debt settlement may harm the coin.

At the press time, Bitcoin is making a declining pennant pattern. This indicates that BTC right now experiencing bearish pressure but if a breakout happens from the top, investors could see a possible uptrend to $28K.

Additionally, if we observe the 14-day RSI, the chart made a substantial declining pattern which already has been broken and thrusting upwards. The current RSI level is at 47, which marks a neutral zone.

Source: TradingView

Conclusion

In conclusion, Bitcoin Pizza Day created a FOMO despite BTC’s low trading volume signals and negative on-chain metrics. The technical indicators today are pointing towards a Bull run as BTC trending upwards for the last 24 hours. Overall, the market is looking positive.