The last 10 days Bitcoin has been locked into a narrow price range of around $9,500. Judging by the ongoing processes, the situation is more like a compressed spring ready to jump aside. Technical indicators, including Crypto Fear & Greed Index and RSI, are in "neutral gear". Nobody wants to rush to buy or sell the asset instead waiting for new impulses from the traditional financial market. The ability to stay above $9,400 will increase the chances of further purchases. If the level does not survive, you can expect a decline first to $9K and then to $8,750.

As for large asset movements, we can note a transaction in the Ethereum network (ETH) between several whales. A hundred thousand ETHs (about $23 million) were put in motion, but judging by the movement addresses, the coins may stay inside the "close circle" of whales. This practice is used from time to time in the Bitcoin ecosystem. The recent movement of around $2.2 billion worth of Bitcoins was associated with the updating of the Bittrex cold wallets structure.

Recently, all Bitcoin fluctuations have been associated with what is happening in the traditional market, and the influence of institutional investors is considered increasingly strong. Recall that as of June 2020, 18.6 mln BTC were mined. The Chainalysis concluded that almost 60% of this amount belongs to companies and is considered a long-term investment. Another 20% were motionless for over 5 years and are considered lost.

There are still 3.5 million coins in circulation that are used in trading. Retail investors (deposits below $10K) account for 96% of transactions. However, the remaining minority accounts for the main liquidity contribution. Up to 85% of all liquidity that goes to the stock exchanges belongs to such a small number of institutional investors, which drives the entire market. This situation is similar to the oil market, where a small (5-10%) share of exchange turnover forms trends.

We can hardly call such a situation conducive to healthy market development, as 60% of the "sleeping" bitcoins do not participate in circulation. We are witnessing the centralization of both hash rate and trading volume due to the relatively small size of this market. In this case, a long sideways trend may reflect the position of an extremely small number of institutional investors.

From time to time we see "overestimation" due to the existing trading volumes in the community. However, in the end, everyone wants to believe that Bitcoin really has the potential for growth. And if you put all the data together, you get a very sad picture, where a very small group of investors can manipulate Bitcoin and the entire market without much difficulty.

Trade Responsibly. CFDs and Spread Betting are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.37% of retail investor accounts lose money when trading CFDs and Spread Betting with this provider. The Analysts' opinions are for informational purposes only and should not be considered as a recommendation or trading advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Solana price eyes new all-time highs before taking a breather

Solana (SOL) price has successfully broken out of the descending top line that was keeping  SOL price trapped below $200. The breakout rally began  at the level of the 50-day Simple Moving Average (SMA), a level which has provided support on several previous occasions. 

More Solana News

Terra hits new record in total value locked ahead of 10% of LUNA supply burn

Terra money ecosystem got its first play-to-earn game Flokiverse that offers passive income to players.Over 100 projects are lined up for launch on the Terra network, a new wave of TeFi. Proposal 128, to initiate IBC on Terra, has passed; DeFi interchain highways for Cosmos ecosystem have arrived.

More Terra News

Polkadot price bound for 50% breakout if DOT bulls can overcome this hurdle

Polkadot price is currently facing a decisive moment as it trades between two significantly troublesome barriers. While overcoming these hurdles will be trying, doing so will lead to a volatile move.

More Polkadot News

BNB to rise over 30% as Binance Smart Chain proposes to burn BNB fees like Ethereum

Implementing a burning policy triggered the “Triple Halving” in Ethereum, driving a supply shortage of Ethereum in circulation. In a similar way, Binance proposes to burn Binance Coin in every transaction. 

More Binance Coin News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast