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A lot of bitcoin selling could well have been in anticipation of the delay from the SEC on the bitcoin spot ETFs.
When the Grayscale vs SEC news broke - that Grayscale had triumphed and the SEC was labelled by the judge as “arbitrary and capricious”, bitcoin and the rest of the crypto market put on quite a spurt to the upside.
Institutions want cheap bitcoin
However, this did not suit the institutional would-be buyers of bitcoin. If they are going to get in, then they are going to get in on the cheap. If bitcoin falls heavily from here and goes down to the test the lows and even below, many more retail investors can be flushed from the market.
Some of the biggest institutions in the world, such as the likes of Blackrock, are waiting for the perfect entry, and who would bet against them achieving it?
Many long term holders of bitcoin have not sold anything. In fact, over the past year more than 70% of the entire bitcoin supply has not moved, according to Ark Invest’s monthly bitcoin report for June.
Be that as it may, there is still no volume in the crypto market and therefore, until there is, bitcoin is probably not going to have any high volatility moves.
Bitcoin in a channel
As things stand, there is a possibility that bitcoin falls out of an upwards channel that can be seen on the weekly time frame. The channel began in September 2022, and there was a large deviation out of it which lasted a good 10 weeks. Since then the channel has been respected, and the bottom, at around $25,000 was last touched in mid August.
It remains to be seen whether bitcoin rises to the top of the channel again, which would break the all-important resistance of $32,000, or if the price breaks below the channel. The latter scenario is probably more likely given that upward leaning channels mostly break to the downside.
If bitcoin does take the bear route investors will need to hold on strong.
It could very much be argued that bitcoin was not invented for institutional money to take hold of. However, bitcoin is there for everyone and doesn’t discern between institutional or retail investors. It still is though a place to park wealth that is outside of the banana republic-like countries that control the fiat monetary system.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.