The Bitcoin market cycle indicator has once again entered a bear phase, signaling caution for investors.
From a valuation standpoint, if Bitcoin’s price falls below $56,000, the risk of a larger correction could increase significantly.
#Bitcoin market cycle indicator is again in BEAR phase (light blue area).
From a valuation perspective, if the price pierces $56K to the downside, risks of a larger correction increase. pic.twitter.com/dsOS9ZSoHZ
— Julio Moreno (@jjcmoreno) August 30, 2024
However, some major players seem to be taking advantage of the recent dip. On-chain data from Santiment reveals a substantial 40,000 BTC drop in exchange supply over the past 48 hours, equivalent to about $2.40 billion.
This coincides with a notable surge in exchange outflows, suggesting strong buying pressure as investors move their Bitcoin off exchanges. The average Exchange Inflow/Outflow ratio indicates robust buying activity, marking the sixth such occurrence in the past decade.
Seems like some major players bought the #Bitcoin dip! On-chain data from @santimentfeed reveals a 40,000 $BTC drop in exchange supply over the past 48 hours, equivalent to about $2.40 billion. This aligns with a notable surge in exchange outflows! pic.twitter.com/9ZS8yrwFrI
— Ali (@ali_charts) August 30, 2024
Despite this buying pressure, retail investors have yet to react. Historically, retail investors tend to enter the market only when prices soar above $70,000, missing the lower entry points that institutional players capitalize on.
The average Exchange Inflow/Outflow ratio indicates strong buying pressure. This is the sixth time this has happened in the last ten years.
Retail investors, of course, won't react, they will enter when the price is above $70K. pic.twitter.com/WWzqKa776E
— Axel 💎🙌 Adler Jr (@AxelAdlerJr) August 30, 2024
In macroeconomic news, the U.S. core Personal Consumption Expenditures (PCE) price index for July increased by 2.6% year-on-year, just below the expected 2.7%. On a month-on-month basis, the index rose by 0.2%, in line with expectations.
The U.S. announced that the core PCE price index for July was 2.6% year-on-year, expected to be 2.70%, and the previous value was 2.60%. The U.S. core PCE price index for July was 0.2% month-on-month, expected to be 0.20%, and the previous value was 0.20%. The PCE in July was the…
— Wu Blockchain (@WuBlockchain) August 30, 2024
This steady inflation rate, neither accelerating nor declining, could be seen as positive by markets and policymakers. It may improve the odds of the Federal Reserve considering an interest rate cut, which could further impact Bitcoin’s market dynamics.
The inflation rate being just below expectations might be viewed as positive by markets and policymakers because it indicates that inflation is not accelerating, improving the odds for the Federal Reserve to cut interest rates. https://t.co/o2S51Ip1SC
— Ali (@ali_charts) August 30, 2024
Bitcoin Spot ETFs Recorded Net Outflow Of $71 MillionÂ
Additionally, on August 29, Bitcoin spot ETFs saw a total net outflow of $71.73 million. Grayscale’s ETF GBTC alone accounted for $22.68 million in outflows, while Ark Invest and 21Shares’ ETF ARKB recorded an inflow of $5.34 million. Currently, the total net asset value of Bitcoin spot ETFs stands at $54.36 billion.
On August 29, the total net outflow of Bitcoin spot ETFs was $71.7301 million. Grayscale ETF GBTC outflowed $22.6760 million, and Ark Invest and 21Shares' ETF ARKB had a inflow of $5.3363 million. Currently, the total net asset value of Bitcoin spot ETFs is $54.362 billion.…
— Wu Blockchain (@WuBlockchain) August 30, 2024
As Bitcoin navigates this bear phase, the actions of major investors and the broader economic context will likely play a crucial role in determining its next move.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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