Bitcoin survived the Death Cross pattern formed on the four-hour timeframe earlier. The consolidation and the indecisiveness proved to be beneficial for BTCUSD.
US benchmark index, the Dow Jones Industrial Average or DJX, gave a good start to the final trading day of the week. The Dow opened a modest 250 points higher.
BTCUSD survives the Death Cross
The short-term technical indicators pointed to a Bearish move for Bitcoin. It formed a Golden Cross in the four-hour timeframe and also broke below the trendline.
The traded volumes remained lower than the average even after or during the Death Cross formation. It indicates that fear did not spread in the Bitcoin market. The consolidation and the caution adopted by the traders helped BTCUSD to sail through smoothly.
BTCUSD declined a bit following the breakout. However, the consolidation phase fizzled out a probable decline. BTCUSD recovered and is now trading close to $9,400.
BTCUSD traded quantity v/s delivered quantity and why is it important?
The exchanges keep track of the daily traded quantity in each security. It happens for stocks as well as for cryptocurrencies.
Recent data shows that of the total Bitcoins mined, roughly 20% of that goes into trading purposes. However, more than 55% is held with a long term view.
55% of the mined quantity taken for delivery is a remarkable statistic.
The above stat is remarkable because the deliverable quantity remaining higher indicates that the consensus is Bullish on BTCUSD. It suggests that investors are holding Bitcoins for the longer term. The short term indicators are not affecting these long term holders.
The current Coronavirus pandemic and the collapsing Financial markets were a pain for Bitcoin as well. Even then, the holding pattern hasn’t changed much. On the contrary, the interest in BTCUSD kept increasing gradually.