As a seasoned crypto investor with a keen interest in on-chain data and market trends, I find the recent accumulation of Bitcoin by institutional investors despite falling prices and low ETF volumes a promising sign. The significant increase in their holdings of 101.6k BTC is not insignificant, especially against the backdrop of dwindling uptake of Bitcoin ETFs.
Over the past fortnight, inexperienced cryptocurrency investors endured significant selling pressure, causing Bitcoin‘s price to drop down to $54,000. Yet, behind the scenes, data from the blockchain indicates that institutional investors seized this opportunity and bought more Bitcoin during the decline.
According to information from CryptoQuant’s blockchain analysis, prominent investors purchased approximately 101.6 Bitcoin over the past one to three months.
The price prediction for Bitcoin remained fairly stable over the past 24 hours, with a value of $57,864. This came after a recent attempt to push beyond $59,000 was met with rejection.
Despite attempting to break through the significant $60,000 mark, Bitcoin’s price appeared stagnant, and there were indications of an imminent drop towards the $54,000 level for accumulation of buying interest.
Can Bitcoin Price Beat Odds To Rebound Above $60,000?
It’s significant that institutional investors have purchased an additional 101,600 Bitcoins during a period when the demand for Bitcoin ETFs has been decreasing.
During the initial three months of the year, there was a significant institution-driven buying spree for Bitcoin ETFs, according to CryptoQuant’s recent report.
Last week, the ETF market experienced a downturn with decreasing prices and reduced trading activity. This trend led to increased buying opportunities for smaller investors due to substantial sell-offs by larger traders.
As a crypto investor, I’ve noticed an intriguing development in the Bitcoin market. Despite the recent price drops and decreasing ETF trading volumes, there has been a significant increase in BTC accumulation. This trend could be indicative of a shift in the market dynamics driven by “large players” actively purchasing the dips.
Bitcoin ETF Volume Back In The Green
On Wednesday, SoSoValue reported a significant surge in the Bitcoin ETF market with over $147 million in net inflows. This brings the overall net inflow to approximately $15.42 billion since the beginning. Despite this recent increase, the selling pressure experienced in the past few months has led to a decline from higher previous cumulative totals.
Although there’s been a change in Bitcoin ETF trading volumes this week, the cryptocurrency faces several challenges ahead. Key among these are the resistance levels at $57,928 and $59,595, which have historically acted as bottlenecks for sellers.
Approximately 1.19 million Bitcoin addresses hold around 686,000 coins with values between $64,815 and $66,55. Flipping the prices of these red circle-marked addresses would be necessary for Bitcoin to surpass the $70,000 mark.
As an analyst examining IntoTheBlock’s IOMAP data, I can report that the most significant support levels for Bitcoin lie between $56,115 and $57,855. Approximately 1.06 million wallets hold around 452k BTC within this price range, which currently brings them profits. If these investors choose to withhold selling their cryptocurrency, Bitcoin’s price could potentially surge, bolstering the uptrend and pushing it above $60,000.
When I noticed the Relative Strength Index (RSI) on my four-hour crypto chart shifting back into the neutral zone around early July, I sensed a change in trend. The market seemed poised for an upward swing, but the lethargic price action above the 50 threshold suggested that sellers remained a formidable force. These sellers could potentially drive prices lower or obstruct any bullish momentum aiming beyond $60,000.
If Bitcoin ends the day at a price lower than the marked 20-day Exponential Moving Average ($57,500), indicated in blue, the selling pressure is likely to intensify due to the ongoing panic selling from retail investors.
From the opposite perspective, it is expected that large-scale investors will continue purchasing during market dips, thereby reinforcing an uptrend in the near future.
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2024-07-11 19:42