Bitcoin Resilience Defies Market Jitters, Big Investors Shift Amid Record Highs
Summary:
As Wall Street opens for the week, Bitcoin (BTC) enthusiasts remain optimistic, pushing for a rise in cryptocurrency's price. Amid ongoing volatility due to the legal dispute between Coinbase and the SEC, Bitcoin briefly dropped below the $69,000 mark but quickly recovered. CryptoQuant's CEO, Ki Young Ju, noticed a shift in Bitcoin ownership, with long-term investors selling off their coins and new investors, primarily institutions, buying up the supply. Despite Bitcoin's record highs, mainstream interest in the cryptocurrency appears to be dwindling.
As the week's trading began in Wall Street, Bitcoin (BTC) enthusiasts maintained an optimistic stance, seeking to propel the cryptocurrency's value. Monitoring by Cointelegraph Markets Pro and TradingView recorded an upswing in BTC as it crossed $71,000. The day before, however, had seen Bitcoin experiencing turbulent fluctuations due to an ongoing legal tussle between U.S. cryptocurrency exchange Coinbase and the Securities and Exchange Commission (SEC), which led to the cryptocurrency briefly dropping below the crucial $69,000 mark. The fall was temporary as buyers returned, energizing the push towards record-high values.
Prominent trader, Skew, cautioned that price false moves could occur as a result of manipulative tactics in liquidity. One such instance was a significant bid support spotted between $70,200 and $70,600 that was later removed from Binance's order book.
As the all-time high continues to serve as an evident price peak, fellow trader Daan Crypto Trades is contemplating potential Bitcoin price pathways if sellers are outpaced.
He concluded to his followers on X (formerly Twitter): “If we can break the all-time high then I think we'll be seeing figures in the low $80,000s soon after.” An accompanying graphic illustrated short-term trendline support symbolized by the 200-period simple and exponential moving averages (MAs) across 4-hour timeframes.
CryptoQuant's CEO, Ki Young Ju, conducted an analysis of on-chain BTC movements, identifying a change in control among substantial Bitcoin holders. He found that long-term investors with sizeable holdings—Bitcoin whales—were selling off their coins, while new large-scale buyers were consistently absorbing the available supply. According to Ki, these were predominantly institutions, with U.S. spot Bitcoin Exchange-Traded Funds (ETFs) taking hundreds of billions of dollars worth of BTC off the market daily. He concluded, "Old whales are selling Bitcoin to new whales (TradFi), not retail investors. This pattern is plainly visible in on-chain data."
A chart depicted the consequences of these significant on-chain ownership shifts, revealing precedence in the run-up to record highs as seen in both the 2017 and 2021 bull markets. Despite Bitcoin reaching new record highs, data shows that mainstream interest in the cryptocurrency has declined in recent weeks.
Please note, that this article does not include investment advice or recommendations. Every investment and trading move involves risk, and individuals should perform their own research before making any decision.
Published At
3/28/2024 6:16:13 PM
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