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Cryptocurrency News Articles
Bitcoin Faces Selling Pressure as $5.64B in Realized Profits Is Recorded, With Bearish Institutional Sentiment
Oct 10, 2024 at 05:20 pm
Bitcoin experienced a tough Wednesday, opening above $62,000 before dropping to a low of $60,300 as of this writing. This marked a 2.33% price decline
Bitcoin experienced a slight price drop on Wednesday, with a 2.33% decrease over 24 hours, reaching a low of $60,300. This adds to a negative weekly performance, indicating a bearish trend for the world’s leading crypto.
On-chain data reveals a massive realized profit of $5.64 billion in BTC within 24 hours, indicating a strong selling pressure. This is evident in the price chart shared by on-chain expert Ali Martinez, which shows that whenever there is a spike in realized profits, BTC prices either stabilize or decrease.
This correlation between profit-taking and market corrections has been observed repeatedly, with on-chain metrics playing a crucial role in understanding the broader market dynamics.
During the same period, trading volume also dropped by 17%, indicating lower activity compared to previous days. Another key indicator pointing to sustained selling pressure is the Coinbase Premium Index.
This index tracks the price difference between BTC on Coinbase, predominantly used by U.S. institutions, and Binance, which is more popular among global retail traders. A negative reading on this index suggests stronger selling pressure from U.S. institutions.
According to data from CryptoQuant, the Coinbase Premium has dropped to -41, indicating a significant sell-off by institutional investors in the U.S. This aligns with the recent approval by the U.S. apex court for the sale of $4.38 billion Bitcoin from Silk Road, which is being held by the U.S. government.
Throughout October, the Coinbase Premium has consistently remained in the negative, suggesting a preference for selling Bitcoin on Coinbase over other platforms. Historically, negative readings on this index have preceded further price declines for Bitcoin.
Despite the bearish institutional sentiment, some analysts still maintain a positive outlook for Bitcoin in the long term, based on technical analysis. For instance, veteran chartist Peter Brandt highlights the BTC/GLD ratio, which measures Bitcoin’s value relative to gold, and his analysis shows an uptrend in this ratio.
This ratio indicates that Bitcoin has outperformed gold significantly in recent years, and Brandt points out the potential for BTC to break through key resistance levels in the BTC/GLD ratio.
At a breakout around 32 ounces of gold, the projections indicate a potential rally for Bitcoin, with some analysts suggesting it could reach over 100 ounces per BTC.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
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