Crypto Industry News:
Ki Young Ju, CEO of analyst firm CrypotQuant, believes that Coinbase’s massive outflow of more than $ 500 million in bitcoin is the “strongest bullish signal” on the market today.
Ju revealed that over 15,000 BTC had been transferred from Coinbase and ended up in fiduciary portfolios that only contain current transactions. This would suggest that large investors are amassing the cryptocurrency after buying over the counter (OTC).
Ki Young Ju also pointed out that when looking at the transactions in which funds were contributed, it was clear that they were not internal transactions, or were not round numbers but specific amounts. Moreover, they have been split into several wallets, which “increases the security costs” and Coinbase Custody is integrated with OTC platforms.
Earlier this year, CryptoQuant noticed several big deals coming out of Coinbase shortly before Bitcoin’s price hit a new all-time high of nearly $ 42,000. It is believed that demand from institutional investors for Coinbase is so great that it may have an impact on further buying or selling pressure.
If the Coinbase premium drops or disappears, it will mean that institutional investors and other big players are no longer amassing much BTC and the buying pressure has dropped significantly. If it rises, it could mean institutional investors and other big players are buying bitcoin. If these are indeed BTC buying institutions, the volume is noteworthy as the pace of new BTC entering the market has slowed since the halving in May. It is estimated that miners are not extracting enough to cover these large outflows.
Technical Market Outlook:
The BTC/USD pair has broken out of the narrow zone located between the levels of $32,921 – $34,839 and tested the long-term trend line resistance around the level of $36,872. The bounce from the level of $32,175 might be considered as a trend line test from the downside, so if the rend line is clearly violated, the road towards upper price levels is open. If the level of $36,872 is clearly violated, then bull might rally straight back to the recent local high located at $38,683 and even break higher. However, the momentum on the RSI indicator is still close to the neutral level, so no real strength is coming to markets yet.
Weekly Pivot Points:
WR3 – $46,671
WR2 – $42,502
WR1 – $37,109
Weekly Pivot – $33,428
WS1 – $27,789
WS2 – $23,603
WS3 – $18,571
Despite the recent corrective cycle the bulls are still in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $50,000, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $20,000 is clearly broken.
The material has been provided by InstaForex Company – www.instaforex.com
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