Though market Indicators suggest limited upsides towards $40,000 price levels as resistance remains strong, amid reports that some leading multinational banks have plans on issuing Crypto brokerage services to their high-net-worth clients coupled with Google recently lifting a ban on Crypto ads.
It’s important to observe the Crypto-verse is still having some anxious moments with many investors’ minds wondering if the brief bearish market trend will resume on the account of the record sell-offs recorded few weeks ago, yet data reports that show the Bitcoin market is presently in a re-accumulation phase.
Data retrieved from Glassnode reveal long-term investors spending patterns appear unaffected by the record sell-offs seen in the month of May coupled with the fact that the rapid price swings of their spending volumes had actually decreased suggesting this type of investors are generally unwilling to liquidate Bitcoin at its present price levels.
However short-term holders primarily retail investors and day traders, on the other hand, increased their spending activity by more than 5 times during the sell-off periods with the maximum spending occurring near the lows of the Crypto market.
Consequently, present technical indicators show a significant number of crypto fundamentals gaining some positivity as it trades much high than its $35,000 support levels which further suggests selling pressure could subside in June.
Giving credence to such bias is data collated from Glassnode postulating the amount of Bitcoin Exchange Inflow Volume on the 7-day moving average just reached a 5-month low of $57 million.
Market pundits further reveal long-term investors representing more than 50% of the Crypto investors base have been buying from the dip, as global central banks show no signs of abating from their massive quantitative easing programs and ultra-low-interest rates policies despite an era of high inflation rates prevailing in many key economic markets.
However, some crypto experts argue that the recovery needed a sustained bullish activity to avoid the return of Bitcoin bears.
This bias is on sentiments showing the “death cross” pattern looming on Bitcoin’s weekly chart, signaling a downside in the form of the 50-week and the 200-week moving average crossing over one another.
This article was originally posted on FX Empire