The situation with Bitcoin on the Binance exchange changed at the end of July, with traders showing increasing pessimism reflected in trading volumes.
Traders Turning Bearish on Binance
The trading volume for Bitcoin on Binance fell sharply, indicating a quick shift to a bearish strategy among traders. Analysis from Amr Taha at CryptoQuant suggests that many traders began either selling Bitcoin or opening short positions. During the last week of July, the trading volume hit a negative value of $80 million, indicating that more traders were selling than buying.
Support from Anthony Pompliano
In a separate report, Bitcoin received public support from Anthony Pompliano, the CEO of Professional Capital Management. In a CNBC interview, he described Bitcoin as the 'king of Wall Street,' noting that the asset is now considered seriously by many in finance. He highlighted that the USD's purchasing power declined by 30% over the past five years while Bitcoin showed better results compared to traditional investments.
Uncertainty Ahead for August
The outlook for Bitcoin in August remains uncertain. Historical data shows mixed results for Bitcoin: in 2023 it fell by 11%, while in 2021 it rose by 14.8%. The average return for August has seen a slight decline of about 2.58%. By the end of July, Bitcoin's 30-day return was up 11.2%. Nevertheless, the recent drop in trading volume indicates many traders are preparing for further downside.
The market situation for Bitcoin remains complex. While traders on Binance exhibit bearish sentiment, the actions of large holders may point towards a potential price bounce. Investors will be keenly focused on further price movements in August.
