Bitcoin fluctuates sideways, why doesn't institutional buying bring more enthusiasm?

Judging from last night's data, the enthusiasm of American investors seems to have cooled down. Although the news that large institutions such as MicroStrategy announced that they would increase their holdings of Bitcoin boosted market sentiment at the opening of Tuesday, this rally soon turned into short-term capital outflows. Although Bitcoin broke through $92,000, it still fell back to hover around $90,000.

Emotions cool down, but the general trend remains unchanged

Although market sentiment is gradually cooling down, it does not mean that there will be a short-term decline. At this stage, the risk of short selling is high because the overall trend is still upward, and Bitcoin may launch a new round of rise at any time driven by new news.

Why didn't the altcoins follow the rise?

Many people found that when Bitcoin rose, the altcoin market did not react significantly. This is mainly because the current purchasing power is concentrated on Bitcoin and its related assets (such as ETFs and related US stocks). Without overflowing funds, altcoins naturally lack the momentum to rise. However, this does not mean that the altcoin market has ended. ALT season is still possible, but we just need to wait for the gradual transfer of market funds.

Signals behind the data

Unlike the active trading on Mondays in the past, the turnover rate of Bitcoin decreased after the opening of the US stock market yesterday. This shows that the price increase over the weekend attracted a lot of short-term profit-taking, while the activity of short-term trading on Monday was weakened. In particular, those investors who entered the market above $80,000 have become the main force of recent turnover.

Short-term support and gap observation

The current main support level of Bitcoin is between $87,000 and $91,000. Market sentiment is relatively stable at present, but it will take time to verify whether this area can become a new bottom. In addition, the URPD gaps of $77,000, $78,000 and $82,500 may be filled at some time in the future. Historical experience tells us that such gaps will be filled sooner or later.

Summary: The Bitcoin market fluctuates frequently in the short term, but the general trend remains stable. For altcoin investors, there is no need to worry too much, just wait patiently for the market funds to gradually spread. In the upcoming market, it may be a wiser choice to pay attention to institutional trends and important support levels.