The price of Bitcoin (BTC) fell by more than 50% after reaching a high of $ 69,000 six months ago, but the plunder did not do much to force some of its wealthiest investors to sell.
Notably, the number of Bitcoin under Coinbase Custody for institutional clients has risen by 296% since Q4 2020, showing that most investors have decided to “hodl” on their investments despite the BTC price well over 50% of the highs of all the time.
– CryptoQuant.com (@cryptoquant_com) May 30, 2022
For example, institutions that deposited 10,939 BTC (~ $ 335 million at current prices) at Coinbase Custody in December 2020, when BTC / USD was about $ 23,000, have since not moved, on-chain data from CryptoQuant shows.
Ki Young Ju, CEO of CryptoQuant, noted:
“For the most part, the same amount of BTC is still in the (saved) wallets, which flowed out of Coinbase for most likely institutional purchases in December 2020.”
If this is the case, then these institutions are currently sitting on 30% profits from their BTC investments. Meanwhile, its decision not to relax its Bitcoin positions, even if BTC / USD has fallen by more than half, underscores its strong “hodling” sentiment.
This also points to the ability of institutions to resist further declines in the Bitcoin price, at least until it falls below the breakeven level of investors of $ 23,000.
Bitcoin bear market not over?
The price of Bitcoin has fluctuated in the range of $ 29,500- $ 30,500 since May 12, underscoring the indecision of the market in a higher interest rate environment.
Related: On-chain data flashes Bitcoin buy signals, but the bottom may be below $ 20K
But several technical analysts expect the price of BTC to continue its predominant downtrend.
For example, PostyXBT, an independent market analyst, arguments that the token may fall to its 200-week moving average (the $ 20,000-22,000 range) next, as shown in the setup below.
Meanwhile, popular analyst Rekt Capital adds that a drop to the 200-week MA could also have Bitcoin form a bearish wick that could take its price down to as low as $ 15,500- $ 19,000.
The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you have to do your own research when making a decision.