Bitcoin Gains Hindered by Sell Orders

Bitcoin Gains- Bitcoin’s Price Gains Curbed by Sells

Bitcoin Gains– Bitcoin (BTC +4.32%) has been experiencing a significant shift in market activity on Coinbase. Recently, there’s been a noticeable imbalance between bids and asks, with more bids piling up. Coinbase analysts David Duong and David Han have pointed out that the surge in sell orders is mainly clustered within 5% to 10% of the mid-price on the exchange, which is putting a cap on further price increases.

In a report on Friday, the analysts explained, The data suggests that we might be seeing some investors taking profits at these levels or more sellers willing to offload their holdings as prices rise, which could be preventing more substantial price gains.

Mt. Gox Repayments Impact Bitcoin, But US Political Shift Offers Relief

Duong and Han pointed to data from Arkham Intelligence, highlighting a specific factor behind the recent sell-side pressure on Bitcoin. They explained, Mt. Gox repayments continue to be a source of pressure, following the distribution of around 50,000 bitcoin to exchanges since July 5, leaving the trustee with a balance of 90,300 bitcoin.

However, the analysts also noted some positive news for Bitcoin due to changes in the U.S. political landscape. They said, This shift has allowed the token to catch up with the sharp devaluation of the U.S. dollar in July. The multilateral DXY index is down over 2% month-to-date, and since Bitcoin is often valued in U.S. dollars, it tends to benefit from a weaker dollar.

Bitcoin Shows Resilience Amid US Stock Market Downturn

Bitcoin, the largest digital asset by market capitalization, is showing remarkable resilience despite a significant downturn in U.S. stock indices, particularly in the tech sector. QCP Capital analysts noted, Bitcoin remains resilient, especially against the backdrop of continued Mt. Gox supply and tanking equities.

On Friday, U.S. stocks opened lower, with the Dow Jones Industrial Average dropping 122 points, or 0.3%, to 40,534 shortly after the opening bell. The Nasdaq Composite also appeared set for further losses, following its worst two-day stretch since October, falling by 41 points, or 0.2%, to 17,843.

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