Bitcoin has experienced a surge in popularity. uptrend In a report published on Friday, Coinbase analysts revealed that despite the price rising by 12.6% over the last week and trading above $66,000 it could still be limited in its growth due to a number of factors. “increasing sell orders”on the exchange.
As per the report, the recent appreciation in Bitcoin’s value has tempted many traders to capitalize by selling, which could curb further gains.
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This report, which analyzes the market’s overall picture, was compiled by Coinbase researchers David Duong and David Han. According to them, sell orders are increasing on Coinbase between 5% and 10% below the average price. higher prices Digital currency is a new form of money.
It is possible that the recent market highs will be reduced as traders reposition themselves in light of current market conditions and take profit.
Duong & Han
There may be some profit-taking at current levels, or a greater willingness of market participants to sell on price appreciation. This could limit the price movement to the upside.
Such activities are essential market sentiment indicators that could influence Bitcoin’s short-term value. Duong and Han cite data from Arkham Intelligence in their analysis. This highlights external factors which are contributing to sell-side pressure.
The ongoing Mt. Since July 5, nearly 50,000 Bitcoins have been transferred to exchanges as a result of the ongoing Mt. Mt. Gox still has a trustee. considerable amount of BTCThis uncertainty could add to market pressure and create a sell-side bias.
Nevertheless, positive factors could help offset the increase in demand for selling. US politics is considered to be one of the main factors.
According to the report, in July the political dynamic of the United States changed drastically, causing a depreciation that was significant of the US currency. In fact, the DXY Index (which measures the US dollar against other major currencies), fell by over 2%.
Bitcoin’s value is measured in US Dollars. A falling dollar would mean a lower price for Bitcoin. higher relative value Bitcoin may act as a cushion against downward pressure from increasing sell orders.
Another Roadblock on the Horizon
The Coinbase report has also signaled that the cryptocurrency market is a volatile one. impending correction Perter brandt, the legendary cryptotrader and Bitcoin enthusiast, has been recently seen to purchase Bitcoin. shared Top cryptos have a significant concern.
Brandt announces his involvement in the terrorism while on the run “impressed” by Bitcoin’s upward trajectory so far, “the sequence of lower highs and lower lows continues despite the halving, despite the [exchange-traded fund] ETf, despite the hype.”
This statement shows a disturbing trend for Bitcoin. Instead of breaking out of its existing range, the asset only continues to move at lower highs.
Bitcoin is currently trading at $66,447. This represents a rise of 3.9% from the previous 24 hour low of $63,229, which was reached by Bitcoin.
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Source: www.newsbtc.com