Institutional Investors Behind The Latest Crypto Market Crash, Experts Say
After the latest crypto market crash over the weekend, Bitcoin is still finding its way back up to its previous levels.
At the time of writing Bitcoin trades at $50,622 with 4.8% gains on a daily chart and 11% loss on a weekly chart.
BTC/USD Daily Chart | Source: CoinMarketCap
According to Material Indicators’s data it looks like Bitcoin (blue line below) has major support at $46,000 as over $26 million in bid orders (below the price in yellow) sit at this level. To the upside, BTC’s price has several levels of resistance at $50,000 and $51,500, as seen in the chart below.
Material Indicators suggest that big players have been behind Bitcoin’s recent price drop reacting to macro-economic factors. As seen below, the announcements made by the U.S. Federal Reserve Chairman Jerome Powell last week almost immediately translated into movements in BTC’s order book.
Wall's been pulled. Either they're done accumulating (30k wall was also pulled at the time), or VolQ is right. pic.twitter.com/sG6DdtFQzL
The chart above also shows high levels of resistance at $70,000 and support at $50,000, the range BTC’s price was stuck in until this past Friday. According to Material Indicators, over the past week, there have been several bid and ask orders place in a fashion attribute to large and institutional players.
This is in line with QCP Capital’s speculation that a whale or institutional players were bringing down Bitcoin’s rally as it moved into the $60,000 area.
4/ Again, this rally was short-lived as selling pressure resumed right on the dot in Asia morning, possibly indicating an institutional player (who might have switched on a spot selling program at the start of the work week).
Now trading above $50,000, selling pressure could still increase to retest the support in the $30,000, leading to another sideways trading phase as the one experienced after May’s crash.
For the time being, the crypto market sits at high uncertainty as the rapid price decline needs time to settle in. This goes against the expectations of those waiting for BTC to behave similarly to 2013 and 2017.
Back then, Bitcoin did a massive rally into December that preceded a multi-year bear market. However, new market participants could be changing its dynamics. Thus, affecting the inner cycles that are embedded into veteran operators.
As a consequence of adoption by institutions, Bitcoin seems to be more susceptible to their influence. Pantera Capital CEO Dan Tapiero, on-chain analyst William Clemente, crypto traders Benjamin Cowen and Credible Crypto to name a few stand amongst that believe BTC’s market dynamics have changed.
Have talked about this for a while but really think there’s a good chance 4yr cycles are over. Why? The type of market participants we now have.
Could very well see rounded tops/bottoms from now on.
Invalidation would be having a blowoff top, would then expect prolonged bear.
