Bitcoin dips after rally as Smart Money takes profits
- Bitcoin (BTC) has experienced a decline following a three-week rally, indicating profit-taking by “Smart Money”.
- The sentiment of large investors has shifted from greed towards fear, while the overall market sentiment remains driven by greed.
- If selling pressure persists, BTC could fall to a support level between $57,955 and $59,589 USD.
What is “Smart Money” and what role does it play?
“Smart Money” refers to institutional or experienced investors who often have more information and resources than the average market participant. These investors tend to strategically open and close their positions, often leading to significant market movements. In recent days, it has become evident that this group of investors has started taking profits from their Bitcoin positions.
Current Market Development with Bitcoin
Bitcoin has seen an impressive rally over the past three weeks, driven by strong bullish sentiment. This rally led to a 26.64% increase in BTC prices from their lowest to highest points. However, at the beginning of this week, signs of a potential correction emerged. Selling pressure increased, indicating that some large investors are securing their profits.
Sentiment Shift Among Large Investors
While the overall market sentiment remains driven by greed, the sentiment among large investors, i.e., “Smart Money”, has shifted towards fear. This shift is evident in the outflows of Bitcoin from large wallets. According to data from IntoTheBlock, there has been a decline in inflows into large Bitcoin addresses over the past ten days, while outflows have increased. This suggests that some large investors are reducing their holdings.
Selling Pressure and Liquidations
In the past 24 hours, there has been an increase in selling volume, though not as strong as last Friday. Interestingly, the number of liquidations, or forced sales of positions, has decreased compared to the previous week. This could indicate that the current selling pressure is driven more by voluntary sales rather than forced liquidations.
Could Bitcoin Fall Below $60,000 USD?
Despite the recent selling pressure, Bitcoin remains on track to end September with a positive outcome. Currently, the BTC price is around $64,073 USD, representing an 8.67% increase since the beginning of the month. However, if selling pressure continues to rise, Bitcoin could fall to a support level between $57,955 and $59,589 USD. On the other hand, a renewed surge in buying power could lead to an upward breakout, pushing the price towards new highs.
Our Assessment
The current market development shows that Bitcoin is going through a consolidation phase after a strong rally. The selling pressure from “Smart Money” could lead to further price declines in the short term. However, the long-term question remains whether bullish sentiment will return and drive Bitcoin towards new highs. Investors should closely monitor market sentiment and the movements of large investors to make informed decisions.
Sources
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
|
| Price | $97,271.00 |
| 24h % | -1.09 % |
| 7d % | -4.40 % |
| 30d % | 3.37 % |
| 60d % | 44.64 % |
| 1y % | 121.35 % |
| Market Cap | $1,921,300,316,286.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
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