Investors in the cryptocurrency market, especially novices, faced acute capitulation last two weeks as BTC price retreated to $54,000. However, on-chain data reveals institutional investors took advantage of the dip to accumulate more BTC.
Based on blockchain data from CryptoQuant, the high-profile investors accumulated 101.6 BTC between one month and three months ago.
Bitcoin price prediction showcased a relatively unchanged in the last 24 hours, trading at $57,864. This follows a rejection that cut short BTC’s uptick above $59,000.
However, the largest cryptocurrency seemed stuck below the larger $60,000 barrier, with signs of another dip occurring to collect liquidity toward $54,000 support.
Can BTC Price Beat Odds To Rebound Above $60,000?
Institutional investors increasing their holdings by 101.6k BTC is not a small feat, considering the accumulation occurred amid a dwindling uptake of Bitcoin ETFs.
In the first quarter of the year “Bitcoin ETFs were marked by an intense process of institutional accumulation,” CryptoQuantshared in a brief update on the largest digital asset.
Falling prices and low volume in the ETF sector characterized last week. Retail and small traders faced accumulation boosted by massive liquidations.
This spike in BTC accumulation despite falling prices and falling ETF volumes could mean a change in the trend fuelled by “a true process of “buying the dip” in large players.”
Bitcoin ETF Volume Back In The Green
A quick turnaround in the Bitcoin ETF market recorded over $147 million in total net inflow on Wednesday, according to SoSoValue. So far the cumulative total net inflow has declined to $15.42 billion, accounting for the selling pressure in the last few months.
Despite the turnaround in the ETF volume this week, Bitcoin price has many hurdles to overcome starting with the seller congestions at $57,928 and $59,595.
The red circles up to the largest between $64,815 and $66,55 where approximately 1.19 million addresses purchased 686k BTC would need to be flipped for Bitcoin to make a debut above $70,000.
IntoTheBlock’s IOMAP data shows the most crucial support between $56,115 and $57,855. The 1.06 million addresses that bought 452k BTC in the range are currently in the money. If they refrain from selling, Bitcoin price could gain momentum to support the uptrend beyond $60,000.
As the Relative Strength Index (RSI) on the four-hour chart reversed into the neutral area in early July, the path of least resistance flipped upwards. However, the sluggish movement above 50 implies that sellers cannot be ignored as they are likely to push prices down or hinder the expected bullish move beyond $60,000.
Should Bitcoin close the day below the 20-day Exponential Moving Average (EMA) in blue highlighting support at $57,500, pressure on the sell-side is bound to continue amid continued capitulation of retail traders.
On the other side of the fence, institutional investors are likely to keep buying the dip thus backing a stronger trend reversal in the coming days and weeks.
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