Although Bitcoin (BTC) had a bearish opening in the day, it was able to find support at the intra-day low of $58,506 and has since managed to get back above $60,000. Consequently, the price of Bitcoin had risen sharply to $61,500, which was 3% higher than the earlier low. This movement has boosted the bullish outlook in the market, notwithstanding the recent fluctuations. At press time, BTC was trading at $60,890.
Source: CoinMarketCap
In the afternoon, Bitcoin saw an increase in the price, getting to rise all the way to almost $61K again. This strong rise suggested that buyers were active in the market and erased early bearish sentiment that saw the price drop to the $58,500 level. After this peak, Bitcoin went through a sideways movement, ranging between $60,500 and $61,000.
The consolidation phase indicates that the bulls are still in control of the market, but the traders are a bit cautious. This is evident from the current price of Bitcoin which has been trading at around $61,000 and has not shown any significant change in the past hours, which means that buyers and sellers are more or less at par at the moment.
Market Cap and Trading Volume
In this phase of price recovery and consolidation, the market capitalization of Bitcoin also grew by 3.07% in accordance with the price trend. However, the trading volume went down by 18. 08%, which suggests that some of the initial interest to buy could have been taken out in the first spike.
This could be because the market is going into a watching mode as investors contemplate the sustainability of the recent price rise.
A lower trading volume after the BTC price increase could mean that there were fewer trades required to maintain the new price level, which could be a consolidation phase before the next significant movement.
Dormant Bitcoin Movements and Market Sentiment
Recent on-chain data from CryptoQuant revealed the movement of $1.7 billion worth of “dormant” Bitcoin, which had been inactive for several years. An anonymous user, XBTManager, noted that 29,000 BTC was transferred on the blockchain between August 11 and 12, which raised some concerns regarding selling pressure.
However, the price of Bitcoin has been trading above $60,000 and this suggests that there is no much selling pressure from the new supply that has been added to the market.
The market still has a neutral outlook with some analysts being slightly concerned due to the inaction in the Bitcoin prices, on the other hand, there are those who remain positive. The bullish sentiment has been further supported by macro factors including a better risk sentiment and selloff in US yields. For instance, there are speculations made by experts like Tony Sycamore that if the status quo persists, Bitcoin may rise to $70,000.
BTC Outlook and Investor Behavior
Currently, Bitcoin is trading above $60,000, and investors are paying attention to the main levels of support and resistance. The range around $60,500 to $61,000 is being considered as a possible base for the further increase.
Consequently, the BTC’s price is likely to rise above $61,500 if the bulls sustain the current momentum; this could lead to a test of the next major overhead barrier at $63,000, and a break above this could lead to a test of $68,000.
Source: Glassnode
According to data from Glassnode analysts, long-term holders have started to buy Bitcoin again after selling off in large quantities during the March price peak. This shift towards accumulation indicates that investors are becoming more optimistic about the future of Bitcoin despite the recent price fluctuations.
