Bitcoin (BTC) hit new local lows on February 26, despite what appear to be extensive institutional purchases.
Fresh downturns despite bullish signals
Data from Cointelegraph Markets and TradingView showed BTC / USD 44,150 during Friday trading – last seen two weeks ago – after recovering to $ 50,000 overnight.
Bitcoin saw good news in the form of Asset Manager Stone Ridge planning to become the first Bitcoin fund, along with major corporate acquisitions from MicroStrategy and Square. However, this failed to stop the bearish sentiment: losses over a 24-hour period were at this time around 10%.
Popular trader Scott Melker summed up on Twitter: “Everyone wants 42K, so maybe we go up or down to 38K now because of the cruel hedge. The audience rarely gets what they want. ”
Michael Van de Pope, an analyst at Cointelegraph Markets, expects the support to end up at around $ 38,000 unless Bitcoin detects buying volumes at higher levels.
On Thursday, he said: “Bitcoin does not seem very big for the trend to continue in the coming period.”
That said, reconsideration can be between $ 54,000 and $ 55,000, but I’m careful when we get there. If we lose $ 47,000, I’m looking for $ 42,000 – $ 44,000, and then $ 37,000 – $ 38,500. This should be the reverse. ”
Institutions still buy: data
Meanwhile, data from the professional trading arm of the American stock exchange Coinbase showed that another large amount of BTC left their general ledgers for a private or blocked wallet – what is traditionally called an institutional purchase.
The latest increase of 12,100 BTC was the second this week, and such high volumes are rare in themselves, as confirmed by the new monitoring resource chart on the CryptoQuant chain.
The so-called “Coinbase Premium”, which represents the price difference between Coinbase and Binance, turned negative in a few brief moments when Bitcoin fell to almost $ 44,200.
As Cointelegraph reports with reference to CryptoQuant, it seems that whales prefer to buy at current prices, and as a result, a fall well below $ 44,000 would be “unlikely”, said CEO Ki Jung Joo.
On Thursday, Key Coinbase Pros described the latest rally of $ 48,000 as “the strongest bullish signal” he has not yet seen in Bitcoin.