Bitcoin activity continues to decline - Kakiforex.com - Financial Market Media No. 1 in the World Bitcoin activity continues to decline Bitcoin activity continues to decline
InstaForex

June 9, 2021

Bitcoin activity continues to decline

 Bitcoin came close to its two supports: the levels of $29,873 and $30,500. Thus, their strength test may happen in the near future, and everything will depend on how successful that test will be. Keep in mind that if one of the trend lines is broken, it will help determine the direction of movement. It is necessary to closely monitor the levels indicated above. If they are overcome, BTC will take a rate of $24,000 per coin. Several factors can contribute to this development of events. We already talked about fundamental and technical analyses in the previous article. Now, you should also pay attention to the actions of the traders and investors themselves. Institutional investors and "whales" are supposedly buying Bitcoin on its fall. But, since the fall continues, it is unlikely that they take all the coins that go to cryptocurrency exchanges. According to Glassnode analysts, the number of active users on the bitcoin network and on-chain value during the past week fell to levels of the end of 2020. The number of active bitcoin wallets has decreased by 18% and now amounts to about 940,000. The total volume of transferred on-chain value has dropped by 65% over the past two weeks, and by 80% over the past three months. The SOPR indicator for traders who have purchased bitcoin in the last 155 days signals the losses they have incurred. Simply put, those who have bought bitcoin in the past five months are at a loss. How can we forget the company MicroStrategy, which is already strongly associated with buying bitcoin, and not with the development of analytical software. It recently announced its intention to raise another $400 million to buy bitcoins. The company is going to place another bond issue with maturity in 2028. So, according to some analytical agencies, on average, MicroStrategy purchased bitcoin at $24,000 per coin. That is, exactly at the cost to which the bitcoin rate can strive in the coming weeks and months.


Technically, what we talked about and what we were waiting for happened on the 4-hour timeframe. The bitcoin quotes broke out of the triangle in which they had been for several weeks. The overcoming of the lower trendline happened, thus, immediately after this event, the quotes immediately collapsed downward without any delay. At the moment, after breaking the trend line, Bitcoin was losing $5 thousand. Thus, we are waiting for it around the levels of $30,500 and $29,873, around which the further fate of the world's number one cryptocurrency will be decided.