BTC witnessed a significant correction of close to 20% last week, and since then has been fairly range bound trading between C$56,500 to C$59,500 over the past few days. The battle between the bears and the bulls continues, as the asset hovers around the 200-day moving average of C$59,400. This is an important level for institutional investors, as it would influence the position that they take on the asset. For now though C$60,000 is a crucial level, and this acts as a strong psychological resistance for the asset, and if BTC does cross that threshold, bulls will most certainly take charge.
We have seen institutional inflows into BTC reduce over the last fews days, and investors are treading cautiously. This does not mean that investors are inactive, but they seem to be investing elsewhere, namely in Solana, with SOL investment products showcasing a whopping 86.6% of total weekly inflows crypto investment products over the past week. Various other altcoin investment products saw inflows pump up, with ADA, DOT, XRP, and BCH following suit after Solana. BTC quarterly futures continues to be the favourite asset amongst whales, as they have relatively stable funding rates, which has helped BTC to maintain a neutral to bullish stance.
BTC was seen consolidating and trading sideways between C$58,000 to C$63,000. Last week, the asset gave a breakout on the upside and the prices rallied up to C$66,428. However, since then, BTC faced resistance and the prices couldn’t sustain at higher levels for long and witnessed a sharp correction almost by 20%. BTC has a strong support at C$55,231 (38.2% Fibonacci Retracement Level) and the lower longer shadows indicate buying around these levels. Currently, the asset is trading in a range from C$56,500 to C$59,500. Once the breakout occurs on the upside of the range with good volumes and if RSI moves above 50, we can expect the bulls to take charge and drive prices upwards; however, if the support (C$55,231) is broken then the prices may slide to the next support level which is at C$51,790.
At the time of writing, Bitcoin’s market capitalization stands at $850bn, and BTC dominance currently stands at 43%.
Key Support and Resistance Levels:
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Information provided in the technical report is for information purposes only and should not be interpreted as investment, legal, or tax advice. Prior to investing, it is very important to evaluate your investment objectives and your risk tolerance carefully. This technical report is not meant to provide guarantees of future performance, and users should not rely on it, as the actual performance and financial results may differ significantly.