As some investors are leaving crypto, large institutional players are moving in, as they see value around the current price levels.
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The market data is provided by the HitBTC exchange.
Recommending investors to sell their Bitcoin in December of last year was against the general consensus, especially considering the lofty numbers that we were seeing back then. Similarly, telling investors to buy Bitcoin now, during sharp declines and in batches is against the prevailing negative sentiment.
Can we pinpoint the exact top and bottom? Definitely not.
But, the readers who followed us and sold close to the highs were spared this scarring bear market. Similarly, readers who start building a position now will not miss the boat when the next bull run begins.
We are noticing that while the retail investors are turning away from cryptocurrencies, larger – mostly institutional – players are showing greater interest in entering this space.
The latest such player to jump onto the cryptocurrency bandwagon was the hedge fund billionaire Steve Cohen who has invested in a new hedge fund, Autonomous Partners, which in turn invests in cryptocurrencies and blockchain-related companies.
It is worth noting that the institutional players did not enter the market when the price were at their highest points. They waited patiently for the fall and began investing in the past few weeks. This shows that they find value around the current price levels.
Let’s look at some critical levels that the investors should keep an eye on both on the upside and the downside.
We expected Bitcoin to find support close to $6,250 but it plunged down to $6,120.45 on July 12. This invalidates our expectations of an inverse head and shoulders pattern. Still, if the bulls defend the zone between $5900 and $6075,