Bitcoinwin: BTC fluctuates at a high level, and the market cannot be seen, see here
According to the Bitcoinwin digital currency market, yesterday's BTC market fluctuated like a "roller coaster", with severe fluctuations, and the overall trend is still in a downward trend within 24 hours.
Bitcoin has been priced high over the past few months, with the world's largest crypto asset having been choppy gains despite heightened market volatility. In the past week, Bitcoin reached its highest point around $61,800.
Let us review the recent market.
On February 22, BTC dropped from around 58,300 all the way to the lowest around 43,000, and fell by more than 15,000 points. Many people thought that the bull market was over. For a normal callback, the BTC weekly line needs to return to the moving average. It is just a "bull's turn", just wait and don't panic. Sure enough, the following market situation also verified the editor's idea. In the next week or two, BTC continued to fluctuate at the 50,000 mark, and the market began to fluctuate and rise last Monday, and finally passed the historical high of 58,300, reaching the position of 61,800.
In fact, this wave of "bull turning back" is mainly due to the news that the US $1.9 trillion economic stimulus bill has been passed. The price of bitcoin can be more affected by inflows than some other assets, as long as there is a net inflow of about $100 million into bitcoin, the price of bitcoin will appreciate by 1%, while the figure for gold will be close to $2 billion , even 20 times higher. In contrast, the same analysis for Treasuries with maturities longer than 20 years shows that billions of dollars in flows have no significant impact on prices, suggesting a larger and more stable U.S. Treasury market. In U.S. dollar terms, institutional money flowing into Bitcoin this quarter was up 20% from the previous quarter, while retail money flowing into Bitcoin was up 90%. The crazy influx of off-site funds pushed up the price of the currency.
The price trend of Bitcoin is largely determined by market speculation, but the large and rapid fluctuations also show the lack of two-way liquidity in the market. The main reason is that more chips are locked, and many addresses have basically not been moved since 18 years, which leads to very few chips floating in the market, and the market fluctuates violently.
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(Change of top 50 BTC holding addresses, purple line in the picture)
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(Top 6 BTC institutional holdings)
On the whole, the external news and fundamentals are all positive for the entire cryptocurrency market. At least logically, there is no reason for Bitcoin to fall sharply. The consensus of "digital gold" is also being recognized by more and more investors in the world. In the future, we can't even imagine how high BTC will be presented.
On the technical side, the daily trend of BTC further confirms the possibility of new highs in the market outlook. We all know that a bull market that has been rising is unhealthy, but Bitcoin is different, its trend is relatively healthy, one step at a time, one wave is higher than the other, and the low point of each callback does not break the previous high point, a typical bull market Quotes.
(BTC daily chart)
(BTC daily chart)
From the current point of view, Bitcoin is trading sideways around 58,000. The purpose is also because the market breaks through the high point of 58,300. There are too many lock-ups that need to be digested, and the back and forth washes will make the chips stronger, so that the next time the market rises sharply, it will rise higher. In fact, everyone should feel that the trend of Bitcoin in the past few days is extremely irregular, with frequent washouts, sharp pulls and falls, pin insertions, and the main force is also long and short. Of course, the purpose of this is to wash the dishes.
If you can't bear the market's back and forth harvesting like this, and you can't stand the market's sharp fluctuations, you can rest with a short position when you are tired and tired, and wait for the market to come out with a clear direction before making a sure decision.
