Why does Bitcoin take a downward trend in the past week and cannot keep his recent profits and positive momentum up.
Summary
- Bitcoin acts at $ 113,721, with a 1.5% decrease in 24 hours, with weekly losses above 55%.
- Making large -scale profit by holders in the long term and loss sales of short -term investors has added a considerable downward pressure on Bitcoin.
Bitcoin (BTC) is currently being traded at $ 113,721 and places a modest decrease of 1.5%in the last 24 hours. The deterioration of the day brings his losses to around 5%on the week, so that the crypto market giant is now set in red for this month.
The current price level marks a strong reversal of BTC’s upward run, just a few weeks ago, when it led the cryptomarkt in a short rally in which it claimed a new highest high point of $ 124,128. But what drives the price fall?
Bitcoin drop fueled by profitable and short-term holders
Post-rally exhaustion and taking profit are important factors of BTC’s decline. After the recent increase above $ 124,000, many holders took the opportunity to resolve the profit in the long term. Although such sales are common in market cycles, the movements with large volumes often describe the price downward pressure.
At the same time, bitcoin holders sell in the short term at a loss. A recent cryptoquant analysis shows that around 50,026 BTC, worth around $ 5.69 billion, has flowed from new investors to stock exchanges for only two days, which indicates panic sales among investors who are not familiar with market volatility.
When these large -scale dumps occur, this increases sales pressure, the accelerating price drops. But in addition to the retail trade, institutional players also become cropping exposure.
ETF outflows become deeper when BTC Wiggles
A continuous three-day series of outskirts in Bitcoin-exchange-related funds adds further pressure on prices. According to facts From Sosovalue, the 12 funds listed by the US registered $ 523 million in net outflows in their last trade session, which brought total losses over the series to almost $ 660 million.
The outflows are the positive achievements of last week, when the funds had put on several million inflow day after day. Persistent ETF outflows often translate into a negative price action, and the current trend is further reinforcing the fragile momentum of Bitcoin.
In addition to the profit and ETF outflows, the weakening of demand also weighs on Bitcoin.
Cooling question and market sentiment
Another cryptoquant analysis Show that the overall demand growth in BTC is delayed, including purchases from ETFs and company buyers. Data from the chains show that funds are currently not currently flows into Bitcoin as they did earlier, which contributes to the overall negative pressure.
At the same time, the retail sentiment has become negative. Data from Santiment to show That traders have turned Bitcoin while Bitcoin slides to $ 113,000, with social media registering the most pessimistic outlooks since 22 June, when to sell geopolitical fears in panic. This reinforces the cautious mood around Bitcoin’s short -term process.
Despite the bearish signals, some analysts remain optimistic.
Is Bitcoin set up for another rally?
Technical analyst stretches Capital says that Bitcoin is currently following a pattern in previous cycles, which suggests that there is room for recovery and growth. According to his analysis, similar pullbacks took place in the same phase of the cycle in 2017 and 2021.
In both cases, the dips were followed by meetings that pushed Bitcoin to new all time.
If history repeats itself, the current withdrawal can work as a reset before another movement is higher, instead of the start of a long -term decline.
