Bears Moving Thousands of BTC — Experts Claim the Worst Is Yet to Come

Bitcoin’s finite nature has positioned the coin to be an “inflation-proof store of value.” However, governmental intervention, coupled with environmental concerns and Bitcoin’s use in criminal funding activities, has disturbed investor interest in the cryptocurrency. Its volatile nature piques interest, as financial compensation is more rewarding for investors. Even though Bitcoin’s value is observed from an outdated financial perspective, FUD is decreasing investor excitement as BTC exchange outflows continue to dominate.

Bitcoin Lacks Power

Chief market strategist at StockCharts, David Keller, has highlighted that Bitcoin is showing signs of trade weakness, although the S2F model predicts that Bitcoin will be trading in 6 digit figures by the end of 2021. While the focus is shifting from the king of crypto towards the regulatory landscape of CBDCs, investors continue to snap up BTC from exchanges.

A CoinShares report indicates that fund outflows have turned downward with Bitcoin product outflows amounting to $7 million. Additionally, Glassnode data suggests that approximately $66 million (2,000 BTC) are being transacted through exchanges daily. New regulatory actions, such as Barclays barring

“UK customers from transferring funds to Binance,”

result in retail and other trader classes reconsidering their investments in certain jurisdictions.

Parabolic price increases are not sustainable. As Bitcoin and the cryptocurrency market continue to react violently to negative crypto observations, price instability will continue to rule the market. Volatility will diminish as institutional funds enter the market; however, more capital means inexperienced traders could affect Bitcoin’s price action. With market instability and the Elliott Wave Theory being imminent, Bitcoin, which has had an “only up” narrative, might face a “real” bear market.

Correction or Not, We’re Here!

China’s ban was the catalyst that disrupted the toxic trait of the crypto market. Similar to the Wild West, crypto consumers require protection from scams, which still roam free within the market. For reference, on-chain behavior signals, Bitcoin’s instability, and a reluctance to recover, might cause the price to break its support line, which was crossed when it reached $28,600.

Divisions, in theory, are highly frequent among traders. One trader’s gain is another’s sorrow. A J.P Morgan report indicates that a bull run could occur when BTC dominance passes 50%. However, as with any unregulated market, nothing is certain. Regardless, June has been a shaky month for cryptocurrencies, and despite positive outlooks on cryptocurrencies, Bitcoin has failed to amount enough power to overcome the overarching negative sentiment.

On The Flipside

Read the Flipside of this story on DailyCoin!

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