Key Points
- After a drop last week, Bitcoin (BTC) price opens the new week with a slight bullish outlook, despite increased fear in the market.
- Metaplanet Inc has purchased an additional 42.47 Bitcoins, bringing its total holdings to 203.734 Bitcoins.
After ending the previous week on a bearish note, the price of Bitcoin (BTC) opened the new week with a slightly bullish outlook.
The leading cryptocurrency bounced back around 5 percent in the past 24 hours to hover around $57k at the time of writing. However, a mild panic in the crypto market, sparked by low demand for the US-based spot Bitcoin ETFs, has amplified the overall fear.
Fluctuating Fear and Greed Index
Bitcoin’s fear and greed index dropped from above 44 percent last week to around 28 on Monday, indicating increased fear in the market.
Despite this, on-chain data shows that smart money has been accumulating in the past few days as fear has increased.
Furthermore, the Bitcoin price is in a macro bullish outlook that was confirmed by the recent fourth halving event and the approval of spot BTC ETFs in several jurisdictions.
Institutional Demand for Bitcoin
The institutional demand for Bitcoin has significantly fluctuated in the past few weeks. The initial cash inflows to the US-based spot Bitcoin ETFs, amidst notable sell-offs by the German government, have heavily impacted the bullish sentiments.
The ongoing Mt. Gox crypto repayment of more than $8 billion, set to continue over the next three months, has been a significant contributor to the ongoing crypto capitulation.
The repayment of the FTX creditors, amounting to around $16 billion, is expected to commence in the fourth quarter.
However, the ongoing Bitcoin selloff has provided a buying opportunity for long-term investors. Furthermore, Bitcoin has been identified as a long-term insurance investment against ongoing fiat debasement.
On Monday, Metaplanet Inc announced the purchase of an additional 42.47 Bitcoins, worth around $2.42 million. As a result, Metaplanet now holds a total of 203.734 Bitcoins, purchased following the recent approval of the board members.
This move places the company alongside MicroStrategy Inc (NASDAQ: MSTR), which adopted the Bitcoin plan several years ago to hedge against rising inflation and poor monetary policies.
Future Bitcoin Price Action
Bitcoin’s price has been forming a bullish flag over the past four months, which could result in a significant uptrend breakout by the end of this year. After closing below the 200D Simple Moving Average (SMA) in the past five days for the first time since October, top analysts led by Benjamin Cowen believe a bullish breakout in Q4 is highly likely.
From a technical standpoint, the Bitcoin price is likely to consolidate above $56k and below $73k in the coming weeks. However, if Bitcoin fails to defend the support level above $56k, further capitulation towards $48k will be inevitable.
Meanwhile, Cowen indicated that Bitcoin dominance will continue to rise towards 60 percent in the coming months before reversing to pave the way for the much-anticipated altseason.
