Bitcoin price has again stooped below the psychological $40000 level and retraced back to $38700 level. But, this dip was well expected and is crucial for BTC to make higher highs in the near term. This just indicates that bulls are fighting off to start a bull rally.
Popular Analyst Micheal Van De Poppe says, as the weekend is approaching, a fakeout for the price is highly probable. BTC should cement $40.6 level as support and further crack $42.7 to be out of the woods for real. The ignited rally from there can take BTC to 48K and 60K eventually. However, for now, the support is stationed at $ 36.7K and $34.5K he states.
The technical indicators flash a neutral signal. The RSI is neutral but the moving averages show a buy signal.
Even though BTC is still acting in resistance, The Fear and Greed Index has finally become neutral after being caught between fear and extreme fear for the last three months. The Index slid as low as 10 last month. It is now 53.
Big Investors are amping up BTC holdings!
Bitcoin (BTC) is being aggressively purchased by institutional groups this week, according to statistics showing a spike in over-the-counter (OTC) trading volumes.
Dylan LeClair, co-founder of analytics and advisory firm 21st Paradigm, in his recent tweet has pointed out that high net worth individuals have a clear interest in Bitcoin at current prices.
Data from Glassnode suggests, there has been a sudden surge in OTC activity just as BTC hit the local highs of $47000. OTC trading rises usually occur in unison with a BTC price jump, making it a classic duo event.
Following the drop from those highs in May and June, OTC entities bought on brief price drops. The same thing happened throughout the 2021 bull run, even before all-time highs were reached and BTC/USD was still climbing.