- Bitcoin starts a gradual recovery
- Bitcoin plunged by 60 percent the last time this sign flashed
- Whales accumulate more Bitcoin during the slight dip
Bitcoin News Today – After recovery of about 150 percent from the low in March, the upward traction of Bitcoin has faded out over the past weeks. For about two months now, the world’s most dominant digital currency has been trapped below the $10k zone. This has resulted in a major trend indicator halting its uptrend. A trader recently said that chances are a strong drop will occur if the indicator slides further.
Bitcoin (BTC) Price Today – BTC / USD
Bitcoin Corrected 60% the Last Time This Sign Flashed
A crypto trader pointed out that the one-week Stochastic RSI reading of Bitcoin is about to print a bearish sign – a bearish crossover while the Stochastic is over 70. In the history of Bitcoin, whenever this sign flashes, the price of the digital currency corrects heavily afterward. For example, close to the high of $10,500 earlier this year, the indicator saw a bearish crossover before the 60 percent correction.
While the Stochastic RSI looks like it wants to turn over on the weekly, the story is not the same for other time frames. Just last week, an analyst observed that the Stochastic Relative Strength Index on the 12-hour, 24-hour, 48-hour, and 72-hour is trending bullish. The convergence of bullish near term Stochastic RSI readings and a bearish long-term reading might suggest a near term rally before a mid-term decline.
Whales Continue to Accumulate More Bitcoin
A trader recently pointed out that the order book of Bitfinex showed that a big buyer stepped in the BTC space on Saturday. According to the order book, the buyer stacked buy order when the digital currency was trading between $8,600 and $8,800. The orders were so much that the trader that shard this information tagged the buyer a “whale.”
Institutional players are also accumulating, increasing their BTC holdings. Kevin Rooke – a content creator and technology analyst – shared a chart showing enormous inflows of BTC into Grayscale Bitcoin Trust.
“Unbelievable. Grayscale added 19,879 BTC to their Bitcoin Trust since last week (53,588 BTC since the halving). Bitcoin miners only produced 7,081 BTC since last week (39,544 BTC since halving).”
The US-based company now has about 400,000 Bitcoin under its management. The company has accumulated more than what miners have mined since the halving took place on May 11.
Grayscale added 19,879 BTC to their Bitcoin Trust since last week (53,588 BTC since the halving).
Bitcoin miners only produced 7,081 BTC since last week (39,544 BTC since halving).
— Kevin Rooke (@kerooke) June 25, 2020
Investors Have Opted to HODLing
According to a recent report by Glassnode – a blockchain analytic company – 61 percent of all Bitcoin in circulation has not moved in a year. This means that many investors are focused on the long-term of Bitcoin, and this same metric was seen before Bitcoin surged to its all-time high of about $20,000.