The Bitcoin price could be stuttering as per price action in the daily chart. However, the project’s fundamentals are rock solid.
There could be immediate barriers to further gains but looking ahead, on-chain and fundamental factors point to strength for the digital gold.
BTC Prices Recoil, Fundamentals Solid
For example, despite the price contraction, more BTC holders would prefer not to liquidate.
Instead, they are ramping up on dips, shifting their coins from exchanges to non-custodial wallets.
This indicates confidence and resilience in the face of strong headwinds forcing weak hands to dump, shifting their coins to HODLers.
It is best to notice that even amid the dip in prices, trading volumes are decent.
On-chain-wise, the hash rate is steady above 100 EH/s, a confirmation that miners are not unfazed.
The spectacular expansion of computing power follows a migration away from China, leading to even more decentralization and project robustness.
Historically, an analyst recently emphasized the need for HODLing saying traders who decided to keep hold of their stash are neck-deep in profits.
Nobody who bought #bitcoin and hodled 4+ years (200 weeks) lost money, EVER!
Also, both 200wma and realized cap (average cost price of all 18.8M BTC) are at all time high (ATH). pic.twitter.com/Bzh8Bn1gqW
— PlanB (@100trillionUSD) August 25, 2021
Morgan Stanley is Bitcoin-Heavy
Bitcoin’s historical performance and solid fundamentals could also explain why institutions are flocking in, getting exposure.
Months after Tesla indicated that they wouldn’t liquidate their BTC coins even after declining to accept the coin as payment, more global banks have set up Bitcoin funds for their private clients.
At the same time, they are doubling down on BTC, getting exposure through derivatives. It has been revealed that Morgan Stanley owns 928,051 shares of Grayscale Bitcoin Trust through their Insight Fund.
BREAKING: Morgan Stanley has just reported owning a large amount of Grayscale #Bitcoin Trust
The largest of these appears to be 928,051 shares held by Morgan's Insight Fund.
(h/t @MacroScope17) pic.twitter.com/puY0X3wpjS
— Blockworks (@Blockworks_) August 25, 2021
Bitcoin Price Analysis
The Bitcoin price is under pressure but stable on the last trading day.
Week-to-date, the coin is at near break-even versus the greenback with subdued participation levels.
BTC is within a bullish breakout pattern, trending at around August 2021 highs, which is technically bullish and encouraging for optimistic buyers.
At the time of writing, the middle BB is the immediate support line.
For the uptrend to be valid, bulls might have to find entries in lower time frames to counter and soak the selling pressure of August 24 and 26. This will affirm buyers of August 19 and 20, validating the upswing of early this month.
In that case, a close above $50k could open up even more loading opportunities for traders targeting $60k in the medium term.
Sustained losses below the middle BB may see BTC prices tumble back to $40k in a pullback from August 2021 highs.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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