As a seasoned analyst with over two decades of experience in the financial markets under my belt, I find myself cautiously optimistic about Bitcoin’s near-term prospects. Having weathered numerous market cycles and witnessed the rise and fall of various investment trends, I can say that this digital asset has shown an impressive resilience and ability to bounce back from adversity.
As a seasoned cryptocurrency trader with years of experience under my belt, I must admit that this past week has been quite challenging for Bitcoin bulls like myself. After reaching an all-time high above $70,000 early in the week, the coin has since dropped approximately 7%. This dip has left me feeling a bit uneasy, as I’ve seen similar patterns before, but I remain cautiously optimistic.
More Pain For Bitcoin Holders?
Considering the unpredictable market fluctuations, one expert is wary of future trends and has even hinted that Bitcoin could potentially decrease further in upcoming trading periods. On platform X, this analyst disclosed some trading statistics, implying that currently, bearish sentiment seems dominant.
The analyst has pointed out that the weekly groups of selling activity have grown, aligning with the recent fall in prices during the last trading session. Given this pattern, the analyst believes that the downward trend for the coin may persist for at least the coming week, as bears could potentially drive the price further down.
As I write this, the net trading volume on major perpetual crypto exchanges continues to show a negative trend. This net trading volume, a crucial metric used by on-chain analysts to gauge market sentiment, varies based on the current market valuation. In simpler terms, it reflects whether more people are buying or selling at any given moment, and this can give us insights into the overall market mood.
When the number of shares sold (net taker volume) goes below zero, it typically means that more traders are selling short rather than buying. As per the analyst’s prediction, the market may rebound once this figure becomes positive again, enabling the bulls to regain control and potentially push prices upward.
On the daily Bitcoin graph, there appears to be strong buyer support near the $63,000 area. If we move up slightly, the region from approximately $60,000 (a commonly used figure) to $63,000 becomes particularly significant for buyers’ stance.
Should bulls maintain this current price point, thwarting attempts by sellers to drive prices down, the probability of Bitcoin rebounding becomes significantly higher. A breakout beyond $70,000 would be pivotal and would align with the optimistic trend that began in the third week of July.
Institutions Accumulating: Spot ETF Issuers Control Nearly 300,000 BTC
In spite of its current vulnerability, institutions are eager to invest in Bitcoin. Following the approval of U.S. spot Bitcoin ETFs, data from Ecoinometrics reveals that major issuers such as Fidelity and BlackRock have amassed close to 300,000 BTC.
According to Soso Value’s data from August 1st, the total value of Bitcoin held by all spot Bitcoin ETFs surpassed $60 billion. Remarkably, on the 31st of July, BlackRock acquired approximately $21 million in Bitcoin.
Despite this, significant withdrawals occurred from various issuers, predominantly Fidelity. This suggests that institutions are increasingly investing, or “doubling down,” on the cryptocurrency, which is highly optimistic for Bitcoin’s future, particularly over the long term.
Read More
- ENA PREDICTION. ENA cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- USD PHP PREDICTION
- LUNC PREDICTION. LUNC cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- USD ZAR PREDICTION
- USD COP PREDICTION
- WIF PREDICTION. WIF cryptocurrency
- EUL PREDICTION. EUL cryptocurrency
- EUR NZD PREDICTION
2024-08-02 02:11