Bitcoin is stuck between two trends, it still can't get out of the $50,000 zone. Now digital gold is trading at a price of $46,700. In just two days, bitcoin lost more than $3,000. However, many crypto enthusiasts and analysts continue to blindly believe the bullish trend, the introduction of investors and positive news from various countries. Now there will no longer be a reverse sharp global drop in bitcoin and a rollback to the June low of $28,000.
However, there are fewer and fewer prerequisites for growth, which is an important factor. Many analysts believe that the bullish momentum of bitcoin is at the same level with the indicators at the beginning of the year. Investors currently use only long or bullish positions, which is fundamentally different from the first quarter of 2021, where all the same traders used aggressive long positions.
This is a tangible and colossal difference, which was provoked by the fact that in the first quarter of the year no one could think about a correction. After bitcoin surpassed the $20,000 milestone, everyone believed in the constant, unprecedented, high-speed growth of the number one cryptocurrency.
Now you can observe different levels, which again need to be overcome and consolidated.
Back in May, it was possible to observe a huge influx of bitcoin, namely, more than 135,000 bitcoins were recorded on the exchange - sales dominated the market. However, more than about two months ago, there was an outflow of more than 100,000 bitcoins. In August, it was possible to observe such a picture that the net exchange flow was recorded at the level of about 2.4 million bitcoins, which is about 12% of the total supply volume.
This may mean that both hoarding and accumulating bitcoins, as well as making a profit, were absolutely the same in the balance. Now there is an incomprehensible picture with bitcoin and the inability to determine and fix which trend is currently prevailing in the market, which can be explained by the division of opinions in the crypto market.
There are many bearish and bullish traders, some of them will have to take a winning position, and some will have to retreat, and only after that it will be possible to observe some shifts. The bears are eager to dominate, but the bulls are still holding the situation in their iron gloves and trying not to miss the tit in their hands.
The material has been provided by InstaForex Company - www.instaforex.com