Bitcoin appears to be losing steam as it trades back and forth between $ 59,000 and $ 60,000. On the daily chart, BTC is moving sideways (0.3%) after a week with slight gains of 4.9%.
BTC is moving sideways on the daily chart. Source: BTCUSD TradingviewTrader Josh Rager has set support for BTC at $ 59,000. If you hold this level there could be enough momentum to retest the $ 60,600 area. The trader expects “new highs” by Wednesday.
On-chain data appears to support this prediction, as demonstrated by CryptoQuant, shared by Byzantine General. The BTC reserves for the spot market continue their downward trend and indicate a “constant demand”. This trader said:
With the exception of these two outliers, the main drains were drains. This massive area of consolidation that we are certain of is akin to re-accumulation.
Further evidence suggests that the current price development of Bitcoin, in contrast to the previous bull run in 2017, is being driven by institutes. Apart from the fact that the Google search volume for “Bitcoin” is relatively low, the Coinbase trading volume has skyrocketed since the third and fourth quarters of 2020.
In this metric, however, the percentage of retail investors has moved down, as the following chart shows. The dealer said:
We talked about upcoming institutions at the last bull run, but now they’re actually here buying.
Source: IntoTheBlockBitcoin 4 year cycles are subject to change
On April 14th, the crypto exchange Coinbase will go public on the US exchange. Under the ticker COIN, the trading platform will be one of the first large crypto companies in the traditional market.
At this moment, VISA converges with the testing of stablecoins. PayPal is expanding its crypto services and Tesla is integrating Bitcoin as a payment method. The above could play an important role this week as the 14th approaches. The dealer said:
This does not mean that no more corrections will be made. Of course not, I mean, we’ve seen three massive (liquidation) corrections this year alone. But this bull run could be different. Perhaps the 4 year cycle structure we’re used to from Bitcoin could break.
Two other key metrics are the percentage of BTC trading over $ 1 trillion in market capitalization and the amount of BTC on the exchanges. The former is valued at 11% as the price of BTC is over $ 53,000, indicating a “validation” of the current price, as stated by analyst William Clemente.
Source: Glassnode The latter has a correlation between the miners and long-term holders who keep their BTC and the increased supply outflow from the trading platform. Clemente added:
In combination with exchange withdrawals, the offer becomes increasingly illiquid. This means that the new wave of institutional demand (which is just beginning) will have to compete for the only 2.3 million coins left on the exchanges.
After seemingly a thousand years of stability and a slight downtrend, Bitcoin is back. The volatility is devastating. Trading...