Bitcoin Continues To Range As Whales Remain On The Sidelines

While there is room for a further price correction, there is no selling pressure.

A CryptoQuant article released today reveals that the Bitcoin market remains fairly quiet as whales have chosen to remain inactive.

According to the article, Bitcoin shot above its realized price with a very high volume following the Fed rate hike last week and Fed chair Jerome Powell’s comments, noting that for it to drop below the closely watched metric, a similar volume would be required.

While CryptoQuant admits the market has room to dip further, judging by moving averages, they note that two key indicators for selling pressure remain fairly low. First, according to the analytics firm, since the Fed decision, Bitcoin inflow to exchanges has remained low, and in addition, long-term holders are holding on to their bags.

It is worth noting that Bitcoin has had a rough nine months, dropping over 70% from its highs in November. This decline has been attributed to a hawkish Fed, a situation further worsened by the collapse of certain blockchain networks like Terra, eroding trust in the ecosystem.

Notably, CoinShares on Monday reiterated the belief that they expect Bitcoin’s recent streak of poor price performances to be short-lived. According to the firm, the Fed would soon start back peddling on its rate hikes in the face of a looming recession. In addition, CoinShares predicts that investors would run to safe-haven assets like Bitcoin in the face of a weakening dollar.

Meanwhile, CoinShares is not the only firm that believes the downturn will soon be over. In its insights released in July, Grayscale revealed that there are just a few months left in the current bear market.

While many of these are optimistic, there have also been those who have called for caution in the markets in the short term. For example, experienced trader Justin Bennett last month warned that Bitcoin could still dip below $10k as the crypto markets have never faced such conditions before, warning that previous bear market patterns may not be relevant anymore.

It is worth noting that, as CryptoQuant highlighted, the crypto markets are now beginning to react more positively to US economic news. Bitcoin notably rose by nearly 10% following the Fed decision last week. At the time of writing, the leading digital asset is trading just above the $23k price point, up 0.51% in the last 24 hours but down 2.20% in the past seven days.