Bitcoin holders faced a difficult period last Monday as the price collapsed from $61,000 to $54,000 in a few hours. The decline, which has been described as one of Bitcoin’s worst days this year, caused huge losses and liquidations.
While the coin has regained its previously lost peak, the data shows that the price of Bitcoin may still be in danger of another decline, which has happened over the past few hours.
Bitcoin Holders’ Behavior Lacks Trust
One of the critical metrics that fuels this idea is the changing attitude of Bitcoin holders. This metric tracks the position of the bitcoin holder whether long-term bitcoin holders are accumulating more coins or reducing their exposure to the cryptocurrency.
When this number rises, it means that Bitcoin holders are buying more bitcoin, suggesting that the price may rise. However, the decline means that these long-term bitcoin holders withdraw their money and put downward pressure on the price.
According to Glassnude, long-term coin holders have sold a lot of their coins since August 5. Despite the rise in bitcoin due to the spot market, this group abandoned 4,881 bitcoins on Saturday, August 10.
Bitcoin Fund Flows
Another factor indicating a possible price drop is spot exchange-traded fund (ETFs). In trading sessions last Wednesday and Thursday, 12 bitcoin funds recorded inflows.
But on Friday, according to SoSoValue, these financial products recorded an estimated $89.73 million outflow, suggesting there are more outflows than inflows. Increased inflows into ETFs were vital for Bitcoin’s rise to an all-time high of $73,750 in March.
Flows data in the second quarter of the year showed that institutional capital played a significant role in raising the price of bitcoin.
During that period, millions of dollars came out of bitcoin ETFs, resulting in bitcoin recording a significant drop in price. Therefore, if inflows continue negative with the start of the new week, Bitcoin may have a hard time staying around the $60,000 area.
Meanwhile, analyst Michael van de Bob shared his opinion on the price movement of Bitcoin. “It’s still too early for this month, but if the monthly bitcoin candlestick closes around $60,000, it looks like a consolidation phase before the big bullish bang,” he said.
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