Since the beginning of 2023, the price of Bitcoin has been raised by over 70%. However, it has recently shown symptoms of reversal after a decisive rejection from the $30K barrier level.
Bitcoin rebounded from $27,575 on Wednesday as of Asian time. With three weeks of negative sentiment among institutional investors, the bears look to be on the move. According to a recent CoinShares analysis, digital asset investment products witnessed $54 million in withdrawals last week. This is a significant improvement from the $72 million outflows recorded in the final week of April.
CoinShares, a digital asset investment business, track the cryptocurrency investing activity of major exchange-traded products, mutual funds, and over-the-counter (OTC) trusts and publishes its results in a weekly report.
While volumes in the overall cryptocurrency market are half what they were at the start of 2023, demand for investment products is 16% higher than this time last year, according to James Butterfill, Head of Research at CoinShares.
Over the last week, Bitcoin has been the primary source of selling for major investors, accounting for about $32 million in outflows. Despite improving sentiment in the United States, the crypto king experienced record weekly short interest of $23 million, primarily from European and Canadian investors.
As per CryptoQuant data on Bitcoin Outflow (total), Bitcoin has been drained severely from exchanges on Monday this week which triggered the market to plummet. The four-day spree of declining Bitcoin trend faced short-term investors pressure.
Amid the rise of Memecoins, many short-term investors had put their funds on Bitcoin hoping for a surge but the reverse happened. Due to this, most of the short sellers could be seen getting out from the market and hence BTC could be seen rising.
According to on-chain data, the number of unconfirmed transactions has dropped to slightly under 400,000 as of Wednesday AM Asia time, down from almost 500,000 over the weekend. Furthermore, transaction costs fell to a little over $5 from over $20 at the height of the crisis.
This made the previous network congestion a thrust to flow as new transactions now could be stored and won't take much time to get confirmed.
Also Read: Bitcoin Price Prediction
Bitcoin (BTC) is currently trading at $27,699.93, with a 24-hour trading volume of $14,620,764,859. This reflects a 0.40% gain in the previous 24 hours and a -3.34% decrease in the last seven days. Bitcoin has a market worth of $536,517,398,483 and a circulating supply of 19 million BTC.
Since failing to break over the $30K resistance level, the price has been consolidating. The 50-day moving average has been providing support but is now being breached to the negative near $28K.
In the case of a true bearish breakthrough, the next likely target would be the $25K support level, followed by the crucial 200-day moving average, which is currently tracking around the $22K mark. The RSI has also lately fallen below the 50% level, indicating a possible short-term loss as momentum shifts negative.
In conclusion, Bitcoin is hovering over $27,500 with selling pressure decreasing as bears are getting away from the market. Technical indicators show a positive ongoing movement with the sluggishness of the network fading away. Overall, the sentiment is optimistic and investors could soon see an uptrend.
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