New Bitcoin investment from Metaplanet: $69.13 million.
Santiment's data indicates BTC's quick return to $57,000 after social media forecasted a $40,000-$45,000 dip.
On-chain data reveals institutional investors remain steady despite the price drop.
After falling 7% on Monday, Bitcoin (BTC) was 1.2% higher at $56,666 on Wednesday. Metaplanet's $69.13 million Bitcoin investment and on-chain statistics showing institutional investors' steadfastness during recent dips support the comeback. Technical analysis and market circumstances imply the larger negative trend may continue in the coming days.
Bitcoin retains $56,000 as Metaplanet injects $69 million to boost BTC holdings.
Tuesday saw Japanese investment and consultancy business Metaplanet announce a "¥10.08 billion Gratis Allotment of Stock Acquisition Rights," seeking $69.13 million for Bitcoin investment. Metaplanet just adopted Bitcoin as a reserve asset to mitigate Japan's debt and JPY volatility. The company follows MicroStrategy, helmed by Michael Saylor, which has amassed 226,500 BTC worth $14.3 billion since 2020, becoming the biggest corporate Bitcoin holder. Metaplanet's action may help Bitcoin and other cryptocurrencies gain popularity.
Metaplanet allocates ¥10.08 billion in free stock acquisition rights to support further Bitcoin acquisitions.
Santiment's analysis shows that Bitcoin rebounded to approximately $57,000 after social media expected a decrease to $40,000–$45,000. As demonstrated in the graph below, crowd sentiment played a major influence in Bitcoin's recent rebound. Similar fears about Bitcoin dropping below $40,000–$45,000 have repeatedly led to quick price recoveries.
Chart of Bitcoin Social mentions
Chart of Bitcoin Social mentions
Santiment's research also demonstrates that social media's positive-to-negative ratio often indicates market peak and bottom chances. Ethereum crested just after the mid-July ETF frenzy, and Bitcoin's greed and fear-driven highs and lows were obvious. Bitcoin's social mood suggests bottoming, offering investors entry possibilities.
Despite the price dip, professional investors have not left the market, according to CryptoQuant. If the US economic downturn been serious, these investors may have left. The Bitcoin Balance and Bitcoin Sum Coin Age charts indicate no reduction in smart money, implying institutional investors have not cashed out or withdrew during the market collapse.
BTC Sum Age Chart
Technical analysis: BTC poised for brief uptrend before slump resumes
After breaking below the rising trendline (drawn from numerous swing lows beginning July 5) on Friday, Bitcoin fell 12% over the next three days. However, it challenged support around $49,917, rebounded 3.7% on Tuesday, and traded 1.2% higher at $56,666 on Wednesday.
BTC may witness a dead-cat bounce, a brief price gain during a downturn, and find resistance around the 61.8% Fibonacci retracement level of $62,066.
This level is a crucial reversal zone since it matches the broken trendline and the 100-day EMA at $63,021.
Without a break over $62,066, prices might fall 19% to hit $49,917 daily support.
The daily chart's RSI is 35, barely above oversold. This suggests a brief relief rally before the decline begins.
A closure above the August 2 high of $65,596 would modify the market structure by creating a higher daily high. Bitcoin's price might gain 6% to retest weekly resistance at $69,648.
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