- Bitcoin has seen some turbulent price action throughout the past couple of days, but it has primarily favored bulls
- The cryptocurrency was able to rally from the lower-$30,000 region to highs of $39,000 before it once again faced some intense selling pressure that sent it reeling lower
- The benchmark crypto has been able to find some strong buy-side support, however, and appears to be well-positioned to see further upside in the days and weeks ahead
- Where the market trends next will undoubtedly depend on Bitcoin. Any strong rejection or continuation of its recent downtrend could lead to deeper losses
- While sharing his thoughts on the current market, one analyst explained that institutional TWAP buying appears to be the driving force behind this rally
Bitcoin and the entire market have been flashing mixed signals to investors as of late, with BTC struggling to maintain its momentum as it nears the top of a long-held trading range.
Where the crypto trends next will undoubtedly depend, at least partially, on whether or not BTC can sustain the rebound it has seen following a dip earlier today.
One trader is noting that institutional buyers may be the source of strength over the past couple of days, as it appears there has been strong spot bidding going on.
Bitcoin Sees Strong Momentum as Bulls Absorb Latest Selloff
At the time of writing, Bitcoin is trading down marginally at its current price of $37,350, which marks a notable decline from its recent highs of nearly $39,000 set just a couple of days ago.
Earlier today, BTC’s price dipped as low as $36,200, but the buying pressure here was quite significant and allowed the crypto’s price to rocket quite rapidly.
Analyst: Institutional Bidding Likely the Force Behind Latest Rally
One analyst explained that bidding for the crypto on Coinbase is likely the source behind the recent rebound, which may be due to an institutional investor TWAPing.
This seems to be a pattern with every dip, which heavily favors long positions.
“The market was overheated IMO but I spooked myself for no reason. Apes got bailed out by a strong Coinbase spot bid. Kinda looks like an institution was twapping again.”
Image Courtesy of Byzantine General. Source: BTCUSD on TradingView.
Unless this heavy spot bidding suddenly disappears, the ongoing Bitcoin upsurge is likely just getting started.
Featured image from Unsplash. Charts from TradingView.