- Bitcoin’s price fell 19% in the past 60 days, despite a rise in large holders, indicating increased institutional demand.
- About 76 new entities holding 1,000+ BTC joined the network in the past two months, signaling long-term investor confidence.
- Bitcoin struggles below key resistance, with bearish sentiment and sell-offs increasing amid a market fear score of 24.
Bitcoin’s price has succumbed to the macroeconomic trends plaguing the financial markets. In the past two months, BTC has witnessed a steady decline and currently trades below the $80,000 market. Yet, the world’s largest token by market cap is experiencing growing institutional interest, as spotted by crypto analyst Ali Hernandez.
Bitcoin Whale Entities Rise Amid Price Dip
Taking to X, Ali revealed that 76 new entities holding over 1,000 BTC have joined the network in the past 60 days. This figure indicates a 4.6% rise and suggests increased demand by institutional players. As of January 29, the number of holders stood at 1,694, per insights from Glassnode. However, this number grew to 1,725 entities by April 4.
It is worth noting that Bitcoin experienced a 19% price correction during this period. As the number of large holders increased, BTC dropped from $103,749 to around $83,864. Experts suggest that institutional investors may be taking advantage of Bitcoin’s price slippage to dip to increase their holdings. Moreover, this trend reinforces the growing confidence in BTC’s price in the longer term.
Ali reaffirmed this view, saying,
Institutions don’t care about todays price, they care about prices in 5 years.
Bitcoin Struggles Below Key Resistance as Market Fear Grows and Sell-Offs Intensify
Despite the increase in large holders, Bitcoin’s price action has been fragile of late. At the time of writing, Bitcoin is changing hands at $78,250 after slipping nearly 5% in the recent intraday session. In that timeframe, trading volume surged by a staggering 626%, per CoinMarketCap data. This massive volume rise signifies increased sell-offs, likely amplified by the ongoing liquidations in the market.
In the past year, Bitcoin surged by 12%, surpassing 76% of the top 100 crypto assets in terms of performance. Furthermore, it has seen 15 green days month-to-date.
However, other technical indicators paint a less optimistic outlook for Bitcoin in the medium term. BTC’s price sentiment is bearish, indicating pessimism among market participants. Addtionally, it is engulfed by an extreme market fear score of 24, as per data from Coincodex. BTC also trades below the 200 SMA.
Bitcoin’s 20-day Exponential Moving Average (EMA) at $83,206 currently acts as resistance. Plus, the Relative Strength Index (RSI) is positioned close to the oversold zone at 34.11. The RSI line’s gradients indicate that a bullish reversal in the short term is unlikely. Unless BTC reclaims the 20-day EMA, the southbound trend will persist.
Jack Dorsey Says Bitcoin’s Future Lies in Peer-to-Peer Payments
Twitter founder and Block CEO Jack Dorsey has remarked that Bitcoin could become a failure if it is limited to a “store of value” asset. Dorsey argued that the current narrative of Bitcoin as digital gold was not the original mission of its creator, Satoshi Nakamoto.
He encouraged developers to build fast, private, and secure payment solutions to improve Bitcoin’s foremost utility as a “peer-to-peer electronic cash system” outlined in the whitepaper.
