The latest surge in Bitcoin (BTC) appears to be driven mostly by institutional investors. The average trade size has increased significantly since September, according to data from U.S. exchanges, indicating that larger, possibly institutional, trades are driving the market upward.
When we examine the BTC-USD Average Trade Size chart, we find that there has been a noticeable rise in the average transaction value. When combined with Bitcoin’s price movement, this tendency tells a powerful story: institutions are probably essential to the rise in the price of the cryptocurrency.
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Larger trade sizes often imply the presence of participants with bigger resources, such as hedge funds, family offices and corporate treasuries, who are capable of making more substantial investments into the market.
Bitcoin price chart
Upon examining the Bitcoin price chart, one can observe the currency’s positive trend. Following a phase of stabilisation, Bitcoin has seen an abrupt and significant surge. Price has been able to hold above the 200-day and 50-day moving averages, which is a good sign of ongoing positive sentiment. The fact that the moving averages are spreading out is sometimes seen as evidence of growing momentum.
Furthermore, the chart’s recent green candles, with their sizable bodies, indicate strong purchasing pressure. Long wicks are a sign of a strong underlying bid in the market as they imply that pullbacks are being swiftly purchased. Institutional investors frequently make high-volume, deliberate acquisitions in line with this situation as opposed to making impulsive bets.
Short-term retracements of Bitcoin are likely to test the resilience of present support levels, as the cryptocurrency looks to be encountering resistance at recent highs.
