On-chain data pointing to underlying strength, with Bitcoin price seeing massive inflows of new capital from new investors
Bitcoin price action as of late has been driven by a combination of recent news developments, jitters within the macro-economic environment, as well as technical weakness. That being said, these factors have not been enough to push the benchmark cryptocurrency below any crucial support levels, as it is still trading within the macro trading range that it has been caught within throughout the past few weeks.
Until this range is firmly broken below, the cryptocurrency’s mid-term outlook remains strong, and its strength in the face of bear-favoring news is surprising.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price stable despite the plethora of bear-favoring news
At press time, Bitcoin is stable around $ 10.500, with bulls defending against any significant downside despite the multiple bear-favoring news developments.
Yesterday, the market reeled on news of BitMEX being pursued by the CFTC for violating multiple regulations. The weakness stemming from this revelation was compounded once the news was released regarding President Trump contracting the virus, hampering the global economy’s growth.
Despite these events, both placing pressure on Bitcoin, the cryptocurrency has somehow avoided seeing any capitulatory downturn.
While speaking about Bitcoin’s present outlook, Willy Woo explained that recent developments surrounding BitMEX could actually prove to be bullish for the market in the long run.
Fundamentally the market is scared for all the wrong reasons.
MEX did NOT get hacked. No traders will lose coins.
Futures exchanges will clean up their practices.
We’ll see less volatility, less scam-wicking, more spot volumes, more organic moves, more institutional money.
— Willy Woo (@woonomic) October 2, 2020
He further added that more new investors are coming in than the mania phase of the last cycle (Dec 2017), which is an incredibly positive sign that points to a maturing underlying market.
“Meanwhile, the on-chain fundamentals are showing more new investors are coming in than the mania phase of the last cycle (Dec 2017), without it reflected in the price.”
This could be one of the main reasons why Bitcoin has been so strong in the face of recent news.
You can see the Bitcoin price here.
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