Last week, there was a more than 10% rise in the price of Bitcoin. Particularly in the previous three days, its volatility has significantly diminished.
The biggest cryptocurrencies’ futures are being questioned. Questions include whether the urge to sell will return or whether it will recover upward momentum.
Here are a few thoughts based on the current pricing range. These insights could help provide a bird’s-eye view of the market’s potential future course.
Little Institutional and Whale Involvement in Bitcoin
Retail buying demand was the driving force behind CryptoQuant’s most recent upward trend. This was the result shown through research carried out by Tariq Dabil (Pseudonym).
Regarding the matter, the specialists gave their views. In their opinion, institutional investors and whale engagement were both strikingly low.
Based on a few convincing arguments, this analysis could be accurate. One explanation is that no long daily candles indicate the previous ascent.
This didn’t necessarily imply that there was no whale activity. On the contrary, there was considerable bullish pressure throughout the whole month. Some of these addresses include approximately 100,000 BTC!
Increased purchasing pressure was evident in last week’s performance. This is especially true for addresses between 100 and 100,000.
Additionally, net outflows from addresses with around 100 and 1,000 coins were present throughout the week. This suggested that whales were pocketing more money as the price rose.
On October 25, addresses containing about 100,000 to 1 million saw a sudden departure. This whale type probably represents exchange addresses.
The abovementioned investigation also demonstrated that the complete addresses’ accumulation levelled out. Additionally, a rise in exchange reserves during the previous week was seen.
This demonstrated that plenty of traders kept their Bitcoins on exchanges. However, this data also indicated that investors might still need to believe in the bulls fully.
Bitcoin May Trade Low for A Long Time
Long-term Bitcoin holding SOPR was worth 0.69 at the time of publication. Long-term holders were, therefore, still on the side of actual loss.
All of the data above strongly suggested that another negative retracement was likely. This indicates that low Bitcoin prices were likely to persist.
Based on its price movement, it is evident that the $20800 to $20899 area was already posing a challenge. The same range served as support and resistance during the preceding several months.
Bitcoin will find it easier to continue its short-term uptrend with demand from whales and institutions. However, if this is different, there will probably be an upsurge in sale pressure, pushing for another negative result.
On the contrary, investors should be vigilant. Investors should prepare for the institution and whales’ resumption of bullish demand.