Bitcoin Investors May Find Trading Clarity in These Results

The crypto market is already showing signs of uncertainty amid the first half of the week.

Bitcoin has already retreated slightly in line with its current price channel, but this pullback has significantly lower volumes and a lower range.

Bitcoin’s current performance is consistent with uncertainty over whether it will continue to rally or pivot.

Some analysts expect the market to continue to seek further downside as the Federal Reserve steps up its quantitative easing.

This result should continue to put increased pressure on risky assets such as Bitcoin,

On the other hand, BTC saw a substantial rally following the outcome of the latest FOMC meeting.

These contrasting scenarios have resulted in the prevailing unpredictability. Bitcoin’s price of $22,863 on August 4 was right in the middle of its current support and resistance range.

Source; TradingView

BTC’s MFI indicator has stabilized near the 50% level and the RSI is showing a similar result.

This reflects the reduction in outflows and a closer look at Bitcoin’s on-chain metrics can help make sense of the market.

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Whales added to their balances during bearish retracements, supporting their current range.

Addresses holding more than 100 BTC rebounded from a monthly low of 15,819 on July 28 to 15,856 on June 3.

Source: Glassnode

Bitcoin’s dormancy metric also reveals that most Bitcoin accumulated, especially towards the end of July, has not budged.

The Dormancy metric is currently near its lowest level in four weeks. This is a sign that most BTC holders are optimistic about the potential upside.

The accumulation close to the current price level is confirmed by the decline in profits made by BTC in the first week of August.

It saw strong spikes around mid-July as investors cashed in after the previous rally. The futures market was not left out in the face of this wave of demand.

The forward open interest metric has recorded a significant rise over the past four weeks.

Source: Glassnode

These observations explain the rise in Bitcoin’s price floor. Whales accumulating BTC is a healthy sign that could favor bulls.

However, the market is still waiting for the uncertainty to dissipate, which means there is still a significant possibility of a bearish outcome.

Bitcoin will likely retest its current ascending support line around the weekend.

However, its ability to rebound will depend on whether the market will depend on prevailing sentiment. A pattern break could also be right around the corner.

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