10.03.202115:15 Forex Analysis & Reviews: Correction our friend - Bitcoin institutional investors

A little over two weeks have passed since our last article, and panics have developed as much as if for the first time on the market. The full-size corrective move on February 22-28 weakened the rate of the first cryptocurrency by about 25%, where the crypto hamsters were so scared that they did not control the flow of emotions coming out of them.

In my articles, I have repeatedly stressed that correction is an advantage for traders since there is an opportunity to enter the market at a discount, but it is almost impossible to explain this to a newcomer in the crypto world, but I will try to do it.

The cryptocurrency market is no longer what it was in 2017 and 2018, market participants have become smarter, and most importantly, qualified traders, or institutional investors who operate in large volumes and are not ready for rash decisions, rushed into us.

Operating with large amounts of investors, funds need to somehow buy up scarce digital gold (Bitcoin), and this is by no means an easy task. So, market participants have repeatedly noticed that during the period of corrections, financial funds are buying Bitcoins from the market, and this time it happened around $48,000.

Based on the data of one of the largest cryptocurrency exchanges Coinbase, which is operated by qualified market participants, then large players buy up everything that drops below $50,000.

You might guess that a correction occurs when large players need to replenish their stocks, and emotional crypto hamsters are happy to give up their digital gold - just scare them a little.

Now, knowing the approximate alignment of the game, you understand what is the point of correction at this time, it should be treated with respect and the ability to regroup trading forces.

Bitcoin Longs vs Shorts:

Longs (95.86%): $ 1,529,716,600

Shorts (4.14%): $ 65,990,268

Following from the indicators on trading operations relative to the leading cryptocurrency exchanges, it can be seen that long positions not only prevail in bitcoin, they also occupy the lion's share of the market.

What is happening in the market at the moment?

The first cryptocurrency is actively restoring lost positions relative to the corrective move $58,367 ---> $43,016, where most of the decline has already been won back. Such a confident recovery of the upward trend signals that the local maximum of $58,367 will not hold for long and new heights are expected soon, and the main forecast remains the coordinate of $100,000 for 1 BTC.

The well-known investment bank Goldman Sachs has published the results of a survey of its clients about Bitcoin and digital assets, according to which investors are optimistic about the rise in the price of cryptocurrencies.

About 20% of respondents believe that in the next 12 months, the price of Bitcoin will exceed $100,000.

Finally, a little humor: the American financial conglomerate Morgan Stanley, which predicted a collapse of the Bitcoin exchange rate to zero in 2017, just recently invested about $200 million in the NYDIG bitcoin service.

The difference between newcomers and the predators of the financial world is that some admit their mistakes and make them profit, while others continue to sit in one place.

General background of the crypto market

Analyzing the total market capitalization of the crypto industry, we can see that the volume of the cryptocurrency market has hardly changed during our last article, which means that the bullish trend is still relevant among traders.

Total Market is: $1.702 trillion

The dominant position in the market is kept by Bitcoin 60.6% of the Total Market, where in terms of numbers it is $ 1,162,841,770,801.

The index of emotions (aka fear and greed) of the crypto market is at the level of 65 points, this is not the FOMO* (Lost Profit Syndrome*) area, where an insane amount of capital and new participants (excitement) are poured into the market. The market is in the stage of recovery regarding the correction, but as soon as the local maximum for Bitcoin is broken, the emotion index will immediately rush to 80-95 points.

Indicator analysis

Analyzing different sectors of time frames (TF), it can be seen that the indicators of technical instruments in the four-hour and daily periods signal a buy due to the recovery process relative to the correction. The weekly period, as before, follows the path of the main trend, signaling a buy.