The recent rise in price to $14k has got some investors taking 25%+ profits on their investment
It was an interesting last week for the crypto market. Bitcoin scrambled all the way to $14k before receding. Also in the news was a Forbes article, which alleged that Binance — the biggest crypto exchanges had planned an elaborate scheme to evade the Bitcoin regulators. We have seen previously that such FUD (fear, uncertainty & doubt) can create short term volatility in the digital market.
Binance was quick to shun these analyses as speculation. Anyways the story didn’t affect the price of the premier digital asset much — if at all it gave further push to a new high. Evidentially, the market shrugged off the charges as well. Ever since the major correction in BTC price in early September, it has been ascending.
Right now the price is flirting just below the $14k level and any move lower has been met with strong buying as BTC carves out higher lows. With the price at the highest level since Jun. 2019, it is not a surprise that people are booking profits here. According to the Chainalysis Market Intel, 274,000 bitcoin were cashed out at a 25% or more USD gain, the week before.
This is more bitcoin sent at 25%+ USD gain than was sent in the previous six weeks combined. This means more bitcoin is sent for sale than there is demand, causing the price to fall. Luckily for BTC bulls, there is another factor that is balancing out the equation.
Over the same time period, median trade intensity averaged 4.155 bitcoin traded for every bitcoin flowing into exchanges, a 25% increase on the 30-day average (chart above) — simply put, demand is exceeding supply on exchanges, supporting the price.
Technically speaking, there is room for bigger correction to the $12k level. It is acting as the immediate support and as long as this level holds, the medium-term bullish bias would remain intact. Any move below this level would turn the MT bias to neutral. For now, Bitcoin is basking in the sunshine.
Originally Published on Medium
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