Exploring Bitcoin’s Recent Price Movement: Impact of Institutional Investors?
Bitcoin (BTC) has started the current week with a bearish tone following a period of bullish momentum over the weekend. The cryptocurrency had been steadily climbing for the past three weeks but now seems poised for a potential pullback.
The recent rally in Bitcoin coincided with a noticeable surge in bullish sentiment this month. There was a significant shift in crowd sentiment from fear to greed within a short span of time.
Similarly, smart money sentiment also experienced a shift, with a greater influence on directional changes. Recently, smart money sentiment regarding BTC has transitioned back towards a more cautious stance, aligning with increased sell pressure observed this week.
Despite the prevailing greed among retail investors, an analysis of significant holder activity indicated a decrease in the inflow of Bitcoin into large addresses over the last ten days. Conversely, there was a rise in outflows from large addresses during the same period.
During Sunday’s trading session, large holder inflows stood at 101.15 BTC, while outflows reached 360 BTC. This imbalance confirms a shift from a bullish to a bearish momentum as large addresses exhibited more net outflows.
Although there was an uptick in sell volume in the past 24 hours, it was not as pronounced as observed on Friday. Notably, the current trend shows a decline in liquidations compared to the increasing liquidations witnessed last week.
Moreover, there has been a slight increase in short positions executed in the last 24 hours, signaling a rising bearish sentiment among traders.
Future Price Predictions: Is $60,000 Support Level in Danger?
Bitcoin is poised to end September positively despite the recent sell pressure. At the time of writing, BTC was priced at $64,073, marking an 8.67% increase from its September opening.
Over the past four weeks, Bitcoin has seen a substantial 26.64% surge from its lowest to its highest point, reflecting the market’s volatility during this period.
Although the current pullback has not displayed significant sell pressure, the market remains susceptible to changes, especially in response to any major Fear, Uncertainty, and Doubt (FUD) events.
If substantial sell pressure emerges, Bitcoin might find support between the $57,955 and $59,589 levels. Conversely, a bullish start to September could trigger a breakout of a bullish flag pattern, supporting Bitcoin’s recovery and potential move towards price discovery.