Bitcoin Stability Suggests Traders Are Defending This Support – Morgan Stanley


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Morgan Stanley analysts said in a note to clients on Friday that the current resilience of the suggests some traders are buying dips below $18,000.

“Bitcoin traded in the narrowest range since late 2020, despite volatility in other markets,” the analysts said, adding that “stability suggests some traders are buying dips below $18.5k for prevent BTC from falling materially below its prior cycle high of 2017.”

Analysts believe that as bitcoin’s bear market has entered its nearly year-long phase, most of those who bought bitcoin in 2021 are “facing heavy losses and appear to be waiting for any rebound to close their trade.” position.”

“A record number of bitcoin units have not been used for any transactions in the past 6 months, currently at 78% of the total and that number continues to rise. What that means, if we simplify it a bit , is that those who bought/received bitcoin more than 6 months ago are holding their positions, some probably waiting for a price rally.For the remaining 22% of bitcoin units held by shorter-term investors who have transacted in bitcoin in the last six months, estimates suggest their average break-even price is slightly above $22.3,000,” the analysts wrote.

Shah also revealed that trading volumes are down on most exchanges except the biggest, Binance, after the company cut bitcoin exchange fees to zero in July to boost its market share.

By Sam Boughedda



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