Big speculators are not buying the dip!

While there is not much to talk about the price action due to Bitcoin trending mainly sideways since our last article, one notable thing is catching our attention. Despite a pullback in the price of Bitcoin, there is no increase in the number of Bitcoin addresses with balances exceeding 100 BTC and 1,000 BTC, suggesting that big players are not buying the dip (unlike on previous occasions when Bitcoin gave up a significant portion of its gains). That is, indeed, a very worrisome development as it comes at a time when bullish momentum is disappearing in the broader cryptocurrency market as well as in the stock market. As a result, we continue to monitor the same things we outlined in the previous article and remain on high alert.

Illustration 1.01

Illustration 1.01 shows another upward-sloping channel playing an important role.

Illustration 1.02

Illustration 1.02 displays the daily chart of Bitcoin's MACD. If MACD breaks below the midpoint, it will strongly bolster a bearish case.

Technical analysis gauge
Daily time frame = Neutral (turning increasingly bearish)
Weekly time frame = Neutral
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of multiple indicators.

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor or any other entity. Your own due diligence is highly advised before entering a trade.

Comment:

Bitcoin is testing the upper bound of the channel shown in Illustration 1.01. In addition to that, so far, there has not been any significant change (to the upside) in the number of mentioned Bitcoin addresses.