- Large investors have dominated the accumulation, while retailers have been reduced
- The increase in the number of large transactions and the participation statistics indicated mixed signals for the Bitcoin price in the short term
Bitcoin [BTC] Traders celebrated a monumental day after nearly $ 5 billion in realized profits flooded the market One of the greatest profit -ranging events in recent months. The increase alluded to an increased level of market activity, possibly fueled by renewed investor confidence.
However, such enormous profit realizations can also precede greater volatility or a decrease in the price of the crypto. At the time of writing, Bitcoin acted at $ 104,370, after a period of very minimal value reduction in the last 24 hours. Can Bitcoin sustain his rally, or is a relapse inevitable?
Large investors versus Retail – who sends the market?
Since the US presidential elections, large investors have considerably increased their bitcoin ownership from 16.2 million BTC to 16.4 million BTC. The size of such accumulation emphasized the growing dominance of institutional players on the market.
On the other hand, private investors have reduced their possession from 1.75 million BTC to 1.69 million BTC – which may indicate caution in the midst of recent volatility. It is therefore clear that large investors determine the pace, which may promote the price momentum of BTC. However, the decrease in the participation of the retail trade could limit further upward pressure.
Source: Cryptuquant
Increase in transactions – what does this mean?
The number of BTC transactions above $ 100,000 has doubled in just one week, from 15,620 to 32,320. Such a dramatic rise is a sign of increased market activity, which indicates that institutional players or wealthy investors act actively.
In addition, the transaction height of 30,320 in seven days indicated growing confidence in the usefulness of the cryptocurrency for transfers of large amounts. However, it remains unclear whether these figures reflect optimism in the long term or speculation in the short term.
Source: X/Ali
Bitcoin’s price promotion and resistance levels
The price charts of the crypto showed a consolidation around $ 104,000, with clear support at $ 92,210 and resistance to $ 106,143. Profit -free profits of nearly $ 5 billion in one day pointed out that sellers are starting to dominate short -term movements.
The RSI of 60.82, however, indicated a neutral momentum, so there was room for both Bullish and Bearish results. Moreover, BTC’s inability emphasized to break above $ 106,000 that buyers may need stronger catalysts to retain the momentum.
Source: TradingView
Participation statio – What does this mean for BTC?
The participation statio meter sheds light on Bitcoin’s market activity.
High positive ratios seemed to point to active new participants who enter the market, which stimulates liquidity and momentum. Conversely, negative ratios emphasize the departure of participants, which can evoke resistance.
That is why understanding these statistics can help identify critical levels of support and resistance, such as the range of $ 104,000- $ 106,000.
Source: X/Hyblock
Read more about Bitcoin’s price forecast before 2024
Bitcoin’s price process depends on the balance between the accumulation of large investors and the caution of the retail trade.
Although market indicators seemed to point to space for growth, the resistance emerged at $ 106,000. That is why the immediate future of Bitcoin will probably depend on whether the sufficient momentum can attract to overcome this critical level.
