The Chief Executive Officer of CryptoQuant, a data analytics company, asserted via a tweet that traders had no reason for placing short-bets against a potential fall in Bitcoin. He explained that despite the benchmark cryptocurrency’s recent fall from its record high of $24,300, institutional investors plan to buy BTC at local lows.
Mr. Ju illustrated his point with an indicator known as the “Coinbase Pro Outflow” indicator. The metric monitors the amount of Bitcoin getting transferred from the US-based exchange’s wallets. He highlighted two instances where the Outflow rate surged while the cryptocurrency was well above $23,000.
In other words, the influx of institutional capital into Bitcoin while it trades above $23,000 increases its bullish prospects. Mr. Ju added that traders risk significant losses if they attempt to trade against institutional investors, in this case, if they increase their shorts below $23,000 against several long trades and expectations.
The analyst was one of the first people to notice Coinbase Pro Outflow into some cold wallets—custodial wallets—on a December some years ago.
Key BTC Levels to Watch — December 24
Bitcoin has fallen into yet another rangebound momentum, as traders see sharp swings between $24,040 and $22,300. Bulls are now waiting for a little push to send the primary cryptocurrency towards the $24,300 ATH once again, and higher. However, while bulls await that little ‘nudge,’ bears could act on the loss of momentum and take the price lower. That said, the lowest BTC can go at this level is $20,000. A fall below that point seems almost impossible at the moment.
Meanwhile, our key resistance levels are at $23,750, $24,040, and $24,300. While our key support levels are at $23,000, $23,800 and $22,300.
Total market capital: $635 billion
Bitcoin market capital: $437 billion
Bitcoin dominance: 68.8%
Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.
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