As Bitcoin’s currency lost 8.17% in the past seven trading days, bitcoin bulls are still feeling the pinch. BTC investors expect a market bottom. Glassnode believes that the market is at its bottom.
Nonetheless, whales and major institutions are currently in the accumulation phase, so it doesn’t matter if the market has bottomed out or is bottoming out right now.
According to research, this accumulation suggests that whales are buying more rather than selling their stock. Retail investors are a strong supporter of whales buying more.
What does all this mean for Bitcoin?
Bitcoin Prices Drop Below $20k
Following a near catastrophic collapse of the crypto industry, Bitcoin’s market stabilised between June and August. The crypto market crash of May and June saw Bitcoin drop by 58%.
During the moderate downtrend, $18,500 remained steady. BTC bulls have been positioning themselves to rally at this level. The timing for a second upswing in Bitcoin is unknown, even though Glassnode data suggest that Bitcoin has bottomed.
However, Bitcoin’s future remains uncertain as of this writing. Recently, the price for one bitcoin has fluctuated between $18,850 – $20,461. BTC was last to break through the $20,000 psychological barrier on October 3.
Cryptocurrency Tops in the Hands of Macroeconomic Problems
With institutional investors becoming more interested in Bitcoin, macroeconomic factors are affecting the cryptocurrency market.
JP Morgan Market Analysts observed in 2021 that Bitcoin was preferred by institutional investors to gold for a hedge against inflation.
NYDIG BTC has received $720 million already from 59 supporters. Bitcoin has now attracted the attention of major financial institutions, and is in line with the whole financial system.
Since Bitcoin’s value is highly correlated with that of the S&P 500 and the NASDAQ, broader financial action is likely to amplify the current distress among Bitcoin investors.
We may see Bitcoin’s price increase in the next months if the bears lose some of their aggressive posture.
Featured photo from Freepik Source: TradingView.com| Featured image from Freepik, Source: TradingView.com