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The crypto market traded sideways all through today with big currencies like Bitcoin and Ethereum ending the trading day around the same price spot they both traded on all through yesterday.
This shows the extent of the low liquidity environment we are currently expperiencing in the crypto market, and that type of environment might soon be over!
In this Bitcoin analysis, we will be trying to answer the question why are we experiencing low liquidity in Bitcoin and we can we expect to end?
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Institutional Investors Accumulating Bitcoin!
Institutional investors have been silently increasing their exposure to Bitcoin over the months. This massive accumulation by many major cooperations, banks and even countries might be the major factor causing the current lack of momentum in the Bitcoin price.
Think about it. Right now the demand for Bitcoin is x3 the available supply and that demand is growing everyday while the Bitcoin supply is getting cut every Bitcoin Halving. But still yet price as refused to move.
And we believe the main reason for this is because institutions are still buying! More Investments from Bitcoin Whales on the Horizon? Is It Positive for BTC?
There is a very high probability that we might see a very massive move in the Bitcoin price once these institional buying powers dies down. Once that happens, the Bitcoin price can begin to properly reflect the massive demand it has all around the world.
Bitcoin Smart Money Logic. Technical Levels To watch
For the technical levels, we want to see Bitcoin price rally and break clear off the institutional investors accumulation region. A price break of this box to the upside could be the confirmation we need for the start of the bullish trend.
However, for this bullish bias to remain valid, the $28k Bitcoin daily key support level must hold! A break of this level could see the Bitcoin price dumping hard.
For the full analysis of this $28k daily key level, read our previous Bitcoin Analysis Bitcoin Bearish Market Finally Bottomed Out! What Next?
How Will This Affect Ethereum?
Ethereum is currently forming a converging pattern on the 4-hour timeframe. This supports our bias that the crypto market in general is currently coiling up for a massive move soon.
A break of this converging triangle pattern could signify the end of the accumulation phase in Ethereum and the resumption of the Crypto trending phase where we see cryptocurrency price across the board making massive moves per day.
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