- BTC trades in a break-or-make region as directional bias fades.
- Meanwhile, the mining industry and retail adoption continue to progress.
- Breaching the support floor at $44,705 will weigh on bulls, canceling the bullish case.
Bitcoin rode roller-coaster waves since the 7 September dramatic crash. The leading token consolidated for some days after the plunge before rising to erase its losses. However, the past 24 hours had BTC consolidating, preparing for a volatile action without a directional bias.
Speculation and Adoption in the Game
An Australian cryptocurrency exchange BTC Markets’ recent report indicates that baby boomers started jumping aboard. Baby boomers refer to individuals born from 1946 to 1964. For now, these people account for 5% of crypto exchange clients.
Also, Bitcoin continues to see increased investor interest. Recently MicroStrategy added its holding, purchasing 5,050 Bitcoin worth $242.9 million. With that, the firm’s holdings reached 114,041 BTC, translating to 0.543% of Bitcoin worth 21 million.
As institutions invest in Bitcoin, mining firm Canaan saw its revenue hit $165 million as net profit stands at $66.2 million. That is the highest quarterly return since the company went public in 2019. The Q2 return is 168% more than the 2021 Q1 revenue but 500% higher than the Q2 figures last year. That indicates increasing interest by institutions as far as mining is concerned. It also shows increased Bitcoin adoption.
BTC on Thin Ice
BTC currently trades over the support floor at $46,833 on a 48Hr chart. However, in a long time frame, Bitcoin appears to consolidate between two critical obstacles – $44,705 and $50,000. A significant close beyond the psychological zone will boost confidence among buyers and restart a new upsurge. That way, the asset will recover from the 7 September crash. It will also propel Bitcoin towards the FVG (Fair Value Gap), ranging between $51,483 and $56,361. If bullishness dominates, the flagship crypto might experience a continuous surge to retest its following psychological zone around $60,000 or the ATH at $64,854.
Though the optimism, a possible increase in selling pressure to knock BTC beneath $47,869 will confirm bearishness. That’s according to the GIOM model. Around this level, nearly 2.18m addresses bought 1.1 million Bitcoin. That means that Bitcoin has chances to dive towards the following support at $44,705.
Meanwhile, if bulls fail to regain strength, Bitcoin might revisit the barrier at $41,000. That will cancel the bullish narrative.