The BTC price has labored back to the $33,000 mark after a drop that had seen it tumble to $28,850 in the past 48 hours. Hopes of a bigger recovery have been dashed with BTC unable to pierce through the $33,000 resistance level.
Worrying signs of institutional demand
With the BTC price testing the lower $30Ks more and more, investors are beginning to soften their bullish stances. According to analysts at QCP Capital, a team of expert traders out of Asia, there are worrying signs of “institutional exhaustion”. With the recent narrative behind Bitcoin’s sensational rally being institutional demand, speculation about institutional exhaustion may see the price of BTC crash even further according to them.
The Asia-based analysts claimed to have done a time zone analysis that broke down BTC moves into Asia hours vs. US hours (12 hours each). They added that they had noted massive US buying since March while the Asian continent had been largely bearish. They went on to emphasize that the last few hours have been the first time that the US whales have shown bearish signs in a long time. They also noted that throughout last week, most of the selling pressure had come from Asia. A slowing down of US institutional demand according to QCP meant a key shift in market demand.
Institutions still buying crypto
Though BTC may be at a risk of a severe corrective phase at least in the short term, various institution-focused platforms such as Grayscale are still seeing large inflows of institutional capital. Large capital inflow is indicative of solid institutional demand. Microstrategy on the other hand, continues its policy of buying every dip having added $10 million worth of BTC to their portfolio on Friday.
Crosstower head of trading, Chad Steinglass foresees a rally if institutions remain interested in buying BTC. According to Steinglass, if institutions relent while awaiting regulatory proceedings, the BTC price could stagnate or even drop further. The BTC price could also stagnate if the dollar recovers and US institutions ease up their appetite for Bitcoin in 2021.
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