Bitcoin has faced price consolidation in recent days while investors are re-engaging with the digital currency amidst the gold price rally.
Current Bitcoin Price Situation
Over the past four days, Bitcoin has established a horizontal consolidation range between $84.5k and $82.3k. The cryptocurrency seeks to regain a bullish sentiment after a decline that followed the second inauguration of U.S. President Donald Trump. Currently, the BTC fear and greed index is around 34%, despite the absence of significant fear, uncertainty, and doubt (FUD) in the market.
Investor Whale Activities
Amid the ongoing U.S. trade war, investors have been turning to gold, resulting in its price reaching an all-time high of $3,017 per ounce. In response, institutional investors have started re-accumulating Bitcoin, often considered digital gold. According to Intotheblock, transactions over $100k have risen from 6,332 to 9,291 in just days. U.S. spot Bitcoin ETFs might break their losing streak, with Fidelity’s FBTC leading a capital inflow of $127 million.
Midterm Targets and Analysis
From a technical standpoint, Bitcoin is attempting to follow gold’s price action. However, for the past 24 hours, leveraged sellers have outweighed buyers. A well-known trader has increased their short position from $400 million to nearly $520 million, with a liquidation price of approximately $85,565. Crypto analyst Ali Martinez notes that BTC price might retest $78k after breaking down an ascending triangle pattern on the four-hour timeframe.
Amid price consolidation and renewed interest from large investors, Bitcoin continues to seek stability and potential growth in the future.
