Bitcoin indicators tone down as consolidation continues

A period of subdued movements has overtaken the crypto market, with Bitcoin indicators also not showing any signs of price breakouts, while analysts are positive of a resurgence.

Bitcoin accumulation by whales and other large investors has comparatively slowed in the crypto market. As a result, Bitcoin indicators have turned neutral after a brief period of bullish behavior. In March 2024, a similar trend occurred after Bitcoin had hit its all-time high. The main factor driving this behavior could be the outflows in the spot Bitcoin ETFs. 

The Grayscale Bitcoin ETF was primarily the main ETF that saw increasing outflows. Although traders termed BTC’s current movements as ‘dull,’ the absence of a crash is a positive sign. It could hint at strong underlying support for the token despite changing sentiments in the market. 

The market sentiments haven’t deterred institutional investors from picking up stakes in Bitcoin. Recently, it reported that it had picked up investments in spot Bitcoin ETFs, totaling over $1 billion. Other institutional investors have also reported no declines in investor sentiments toning down. A bulk of these investors could be long-term proponents in the crypto market.

According to price data, the market fundamentals of Bitcoin and other tokens are robust. Crypto token prices have traded with lower volatility in the last few days. Moreover, the current prices are still way above their 2023 levels.

BTC/USD 1D price chart

Bitcoin is currently trading at around $61,600 on May 9, 2024, with BTC/USD trading lower by a margin of 1.67% in the last 24 hours. Bitcoin’s market cap was trading at around $ 1.21 trillion in the last 24 hours.

BTC/USD is trading below its 20-day EMA (62,936.08), as BTC’s 24-hour volume was at around $25 billion. The global crypto market cap decreased by around 2.58%, trading above $2.28 trillion. BTC’s year-to-date returns are at 46.08%.

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