In spite of the flagship crypto-asset surging nearly 17% for the week, Bitcoin bulls seem to be taking a break.
FTX exchange data shows a significant resistance near $46,500 near the flagship crypto asset. Market indicators anticipate its price will drop if it does not overcome $46,500 resistance.
Over the past 24 hours, the price has stayed above the $45,000 zone and above the 100 hourly simple moving average.
Furthermore, market commentators speculate that the Crypto market might take a breather now. Based on recent price action, it appears that the pioneer crypto asset will consolidate in the $40K-$45K range until late August or early September when it is expected to take decisive action.
The volatility has been trading rich and the upside has been written beyond 50K for August and September.
The extra spending could fuel inflation, encouraging the appeal of bitcoin as a bulwark against the devaluation of dollars. Since the COVID-19 pandemic, several trillion dollars have been created by the Federal Reserve to support the world’s largest economy.
Meanwhile, Neuberger Berman’s commodity-focused mutual fund has been given the green light to invest indirectly in the flagship crypto for the first time.
Listed in Wednesday’s regulatory filings is the $400 billion manager’s Crypto derivatives portfolio, Bitcoin trusts, and exchange-traded funds (ETFs).
As a mutual fund, the fund would be widely accessible to investors. It has been doing well this year as commodity prices have rallied relatively high. By the end of June, it held gold, corn, heating oil, and Brent crude as top holdings.
On the technical side, Glassnode shows the Spent Output Age Bands, demonstrating that on the whole, middle-age coins (between 3 and 12 months), as well as old coins (over one year), are relatively dormant, and are not exiting the market.
These buyers are typically younger and between the ages of 3m to 6m, making up the majority of spending in this cohort. There are transactors who have recently exited or de-risked their businesses towards their cost basis.
On the whole, this metric is fairly bullish since there does not seem to be an acute exit selling trend among old hands.