19 Apr

The fact that institutional investors and holders of Bitcoin exchange-traded funds (ETFs) have not realized much in their gains suggests that there won't be any selling pressure from this group in the near future. Was the Bitcoin decline below $60,000 the local low point?
Bitcoin cost?

Owners of Bitcoin ETFs have only achieved 1.6% in profit

According to data from CryptoQuant, investors that keep at least 1,000 BTC for a maximum of 155 days are known as short-term Bitcoin whales and have an unrealized profit of just 1.6% on their holdings.

Ki Young Ju, the founder and CEO of CryptoQuant, on the other hand, claims that the group of old whales who have held at least 1,000 BTC for more than 155 days had achieved an unrealized profit of 223%. In an April 19 X post, Ju wrote:

"I don't think there's enough profit to break this cycle."

Small-scale miners' realized profits are down 131%, but those of large mining companies are up 81%. The five biggest mining companies have not sold ahead of the Bitcoin halving, despite the substantial unrealized profit.

According to a report published on April 10 by Bitwise, the top five mining companies sold a total of about 2,000 Bitcoin in the first quarter of 2024, which was a two-year low.

On April 16 and 19, the price of bitcoin dropped below $60,000 before rising back above $65,000. Thus, it is expected by technical analysts that the price of Bitcoin has created a "double bottom" pattern.

Important technical indicators have also reset from overbought area in response to this week's decline. For instance, on the daily chart, Bitcoin's relative strength index (RSI) is 46, indicating that the asset's price is neutral. This is in contrast to March 17 when the RSI was 76, indicating that Bitcoin was overbought.

An asset's oversold or overbought position can be determined by looking at the size of recent price fluctuations using the widely used RSI momentum indicator.

Is there a bottom in Bitcoin?

According to Arthur Cheong, founder and chief information officer of DeFiance Capital, Bitcoin's retreat to less than $60,000 earlier this week might have signaled the local bottom for the market. Cheong stated in an X post dated April 19:

"High probability that was the bottom in the area."

Furthermore, on the 4-hour chart, the price of Bitcoin broke out from a substantial channel. According to a post on April 19 X by well-known cryptocurrency trader Satoshi Flipper, this implies that $72,000 would be up next.

On the week of the halving, institutional net inflows from the ten U.S. spot Bitcoin ETFs have started to decline. Dune reports that on April 18, there were cumulative net outflows from the Bitcoin ETFs totaling over $147 million.

Denis Petrovcic, the CEO and founder of Blocksquare, claims that the primary cause of Bitcoin's declining price action was the decreasing inflows into exchange-traded funds (ETFs). With the impending halving, this price action is expected to turn bullish.

April 2024, Cryptoniteuae

* The email will not be published on the website.