Bitcoin is experiencing a period of declining demand and profit-taking after a strong price increase in July.
Bitcoin demand has decreased by about two-thirds, while institutional investors and ETF funds have also reduced purchases. Bitcoin price is stabilizing around crucial support levels, limiting the risk of a deep decline.
MAIN CONTENT
Bitcoin demand has decreased from 174,000 to 59,000 since July.
Net buying of ETF funds in 30 days has dropped to the lowest level since April.
Bitcoin is maintaining support at 110,000, limiting the risk of deep price declines.
What is causing Bitcoin to trend towards declining demand and profit-taking?
Analysis from CryptoQuant shows that Bitcoin demand decreased sharply after July, from a high of 174,000 to about 59,000. This reflects the market sentiment shifting from extremely optimistic to a more cautious state, as investors begin to take profits.
At the same time, the buying of ETF funds and institutional investors has also decreased significantly, especially net buying in the last 30 days dropping to 11,000, the lowest since April this year. This factor further reinforces the price adjustment trend of Bitcoin.
How much profit are large investors realizing?
Since July, Bitcoin investors have sold and realized a net profit of about 74 billion USD. Among them, Bitcoin whales have made a profit of about 2 billion USD on August 16, showing the active participation of large investors in the market adjustment process.
The strong profit-taking by whales signals a market shift, prompting other investors to reconsider their holding strategies during this period.
Bitcoin is holding firm at the support level of 110,000 USD, limiting the risk of deep declines for the market. This is an important price point noted by on-chain traders, helping to reduce selling pressure.
CryptoQuant, August 2024
What support level is helping to stabilize the Bitcoin market?
According to CryptoQuant's assessment, the important support level for Bitcoin is currently around 110,000 USD. This price threshold is highly regarded by many on-chain traders and will create motivation for holding assets rather than panic selling.
This support level helps minimize the risk of sharp declines while calming market sentiment after a hot surge, allowing Bitcoin to maintain and prepare for further advances.
How do institutional investors influence the current market trend?
The net buying of ETF funds and institutional investors has sharply decreased in the past month, especially the 30-day net buying figure at its lowest since April. This reflects heightened caution among institutions as the market shows signs of adjustment.
Selling pressure from large funds is causing market demand to decline, contributing to the current price adjustment trend.
Should we expect a recovery of Bitcoin in the near future?
Although demand is decreasing, Bitcoin's maintenance of the crucial support level of 110,000 USD shows that the risk of a deep decline is being controlled. With the participation of profit-taking whales, the market will gradually rebalance.
Long-term strategy and patience remain key factors in the volatile cryptocurrency market context, with positive data from on-chain developments providing a foundation for recovery expectations.
Frequently Asked Questions
What main factors is Bitcoin currently affected by?
Bitcoin is experiencing declining demand and profit-taking after reaching its peak in July, reflecting investors' cautious sentiment.
How much profit did Bitcoin whales make in August?
Bitcoin whales recorded about 2 billion USD in net profit on August 16, 2024.
What is the crucial support level that helps Bitcoin limit the risk of deep declines?
The current crucial support level for Bitcoin is 110,000 USD, highly regarded by on-chain traders.
Why has the net buying of ETF funds decreased significantly?
This is due to institutional investors being more cautious as the market shows signs of adjustment after a hot surge.
Will the Bitcoin market recover in the near future?
With solid support levels and signs of on-chain balance, the recovery outlook remains hopeful based on current data.
Source: https://tintucbitcoin.com/bitcoin-co-the-giu-ho-tro-110-000-usd/
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