The last few weeks have been a rollercoaster ride for Bitcoin investors and traders. It has been very hard to say if BTC will rise or plummet. This uncertainty has led to millions in lost trades. Meanwhile, Bitcoin whales have been accumulating. It has been a full month since Bitcoin last touched the $70,000 mark. Let’s understand what has been happening in the market.
Fear of Mt. Gox Selloff
One of the biggest fears of the market has been the selloff by Mt. Gox creditors. Though Mt. Gox has transferred most of the funds to the collaborating crypto exchanges, not all creditors have received them yet. The market fears that these creditors, once received the funds, will sell off, triggering a negative motion in the market. This fear has been holding Bitcoin under $60,000 for a month.
Government Factor
First, the German government dumped their 50,000 Bitcoin in the market, and now it looks like the US government is planning to follow in their footsteps. Any action related to crypto by a solid nation can heavily impact market conditions. The movement of Bitcoin from the US government wallet to Coinbase triggers the same fear as Germany did.
Market Indications
For almost the last 12 days, the price of Bitcoin has been consolidating between the price range of $56,000 and $60,000. There have been mixed reactions from the market leaders. Some are predicting a fall, while others are hoping for a bull run resume. The same confusion can be seen on the charts. Looking at the weekly chart, a ray of hope appears, as it seems the market is trying to create a cup and handle pattern. If succeeded, the market will rally. However, MACD indicates a rise in bear movement, which may cause the market to consolidate more. Failure of the chart pattern may lead to a plummet in price.
Looking at all the above conditions, it is very difficult to predict the next market movement. However, if we look at the whale’s accumulation data, the idea becomes clear. When retail investors are scared and draw back from the market, the whales take this opportunity to accumulate more Bitcoin at discounted prices. Until and unless the price breaks out of the consolidated zone, it is very risky to take any kinds of trades.
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