Bitcoin downside is back but analyst warns big players ‘want your Bitcoin’ – Bitcoin (BTC) is being aggressively bought up by institutional entities this week as data shows over-the-counter (OTC) trading volumes spiking.
As noted by Dylan LeClair, co-founder of analytics and advisory firm 21st Paradigm, high net worth individuals have clear interest in Bitcoin at current prices.
Investors ramp up BTC activity
Citing data from on-chain monitoring resource Glassnode, LeClair eyed a sudden uptick in OTC activity just a BTC/USD hit local highs of $40,700.
A classic tandem event, OTC trading increases tend to accompany a BTC price spike.
In May and June following the comedown from those highs, OTC entities bought on temporary price dips. The same phenomenon has occurred throughout the 2021 bull run, even before all-time highs appeared and BTC/USD was still on the way up.
“Big transfer volumes from OTC Desks over the last week,” he commented.
“High net worth individuals & institutions want your Bitcoin.”
While the latest spike was not the largest in terms of volume, data shows impressive flows from major exchanges.
As previously reported, around 57,000 BTC left exchanges in a single day Wednesday, while Thursday saw Kraken alone shift a giant 98,000 BTC as buy-ins accelerated across the market.
Despite losing over $400 million on its BTC stash in Q2, meanwhile, MicroStrategy, arguably the king of institutional Bitcoin investors, has already pledged to buy more.
….But lower prices persist
Friday’s price performance may meanwhile precipitate a replay of earlier buying interest.
At the time of writing, BTC/USD circled $38,600, having dived 2.7% in an hour as a streak of bearish sentiment entered the market.
While nothing unusual, the volatility highlights the difficulty bulls face in overcoming resistance, be it psychological at $40,000 or technical at $41,000 and above.
Patiently waiting for volatility to kick in on #Bitcoin here.
Stuck in a small range. pic.twitter.com/Xu6ZJgdNaJ
— Michaël van de Poppe (@CryptoMichNL) July 30, 2021
Given the relative lack of volatility over the past 24 hours, however, such a move was broadly expected among traders waiting for a higher low after the trips above $40,000.
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