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The recent Bitcoin (BTC) rally is pointing to institutional investors as the driving force. Data from U.S. exchanges reveals a significant uptick in the average trade size since September, suggesting that more substantial, potentially institutional, trades are propelling the market upwards.
Analyzing the BTC-USD Average Trade Size chart, we observe that the average transaction value has seen a marked increase. This trend, when coupled with the price action of Bitcoin, provides a compelling narrative: institutions are likely playing a pivotal role in Bitcoin's price ascension.
Larger trade sizes typically indicate the participation of players with deeper pockets, such as hedge funds, family offices and corporate treasuries, who are capable of making more substantial investments into the market.
Bitcoin price chart
Turning to the Bitcoin price chart, the currency's bullish momentum is evident. After a period of consolidation, Bitcoin has experienced a swift and decisive upturn. The price has successfully maintained a position above both the 50-day and 200-day moving averages, a strong indicator of sustained bullish sentiment. The moving averages are fanning out, which is often interpreted as a sign of strengthening momentum.
Alex DovbnyaMoreover, the recent green candles on the chart, with their sizeable bodies, reflect aggressive buying pressure. The absence of long wicks suggests that pullbacks are being bought up quickly, indicating the presence of a solid underlying bid on the market. This scenario often coincides with institutional investment, as these entities tend to make strategic, high-volume purchases rather than quick trades.
In the immediate term, Bitcoin appears to be facing resistance at recent highs, with potential retracements likely to test the strength of current support levels.
Alex Dovbnya
Vladislav Sopov
Dan Burgin