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June 7, 2021

Institutional investors cannot save Bitcoin

 Institutional investors and traders are in no rush with new purchases of bitcoin. This, of course, does not mean that there are no buy deals at all now. Otherwise, bitcoin would continue to fall, and not stand in one place. However, the efforts of institutional investors are clearly not enough to create a Bitcoin shortage on cryptocurrency exchanges. After all, it is the shortage of coins available for purchase that makes sellers raise prices, which leads to an increase in the rate of the first cryptocurrency. According to the analytical service Santiment, "whales'' have added another 50,000 coins to their wallets over the past 10 days, but this did not provoke any growth in the value of bitcoin, as retail traders (of which there are many more) and miners continue to actively sell, not believing in the fact that in the near future, bitcoin is able to restore the "bullish" trend. It is also reported that the volume of open positions in bitcoin futures on the Chicago Mercantile Exchange fell to its lowest level since mid-December 2020 - $1.36 billion. The number of active positions has halved compared to mid-April, when bitcoin was at its maximum positions. Thus, the fundamental background, even of this nature, continues to indicate that it will be very difficult for Bitcoin to show serious growth in the near future. Institutions can buy as many coins as they want, but if the rest of the market is actively selling, the rate will not grow. Thus, we continue to expect a drop in bitcoin quotes in the medium term. The best way now to determine the possible direction of Bitcoin movement is through technical analysis. Of course, news from Elon Musk or the governments of China or the United States can come at any time. However, this information is more likely to create additional pressure on the first cryptocurrency than help it. Retail traders must believe again in Bitcoin's growth, but there is no reason for this right now.

Technically, bitcoin on the 4-hour timeframe continues to position itself between the two trend lines, even though they are already as close to each other as possible. Nevertheless, in the near future, a breakthrough of one of the trend lines may be carried out, which, in theory, can suggest in which direction to expect further movement of "digital gold". However, there is a rather subtle point here. Because if bitcoin continues to move frankly sideways, a breakout of any of the trend lines will not be considered a breakout and a signal to open trades. We advise you to be careful. So far, bitcoin is at the lower trend line, so there is a greater likelihood of going to the level of $30,500.