Bitrabo Editorial
The past week has been challenging for Bitcoin bulls as the coin has seen a 7% decline since surpassing $70,000 earlier. Despite a significant increase between July 14 and 21, recent price movements have been choppy and mostly downward, indicating a potential presence of bears in the market.
Potential Continued Losses for Bitcoin Holders
One analyst is wary of what lies ahead, foreseeing further drops for Bitcoin in upcoming trading sessions. The analyst observed that bears have been dominating the market, evidenced by increasing liquidation volumes coinciding with recent price declines.
The net taker volume across major perpetual exchanges remains negative, indicating a prevailing sentiment favoring short positions. For a market recovery, the analyst suggests that a shift to positive net taker volume is necessary, signaling a bullish takeover.
Chart analysis indicates that support for buyers lies around the $63,000 mark, with a critical zone between $60,000 and $63,000. Holding this range could pave the way for a potential recovery, particularly if Bitcoin breaches the $70,000 resistance level.
Institutions Increasing Holdings: Spot ETF Issuers Amass Nearly 300,000 BTC
Despite the current market downturn, institutional interest in Bitcoin remains strong. Following the approval of spot Bitcoin ETFs in the US, leading issuers such as Fidelity and BlackRock have collectively accumulated close to 300,000 BTC.
Data from Ecoinometrics reveals that spot Bitcoin ETFs hold over $60 billion worth of BTC, with significant purchases from BlackRock on July 31. While some issuers saw outflows, the overall trend of institutions accumulating Bitcoin bodes well for the coin in the long run.