Bull trap? Discussing the Current Situation

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2021-10-26 06:45:07

Bitcoin has had a continuous growth process of about 27 days from a price of $ 30,000 to a price of $ 47,000 so corrections are common. Bitcoin is having a slight correction towards the level around $45,000. Altcoins also adjusted similarly.

Many people say that these rallies that take place are often “bull traps”, that is, a bull trap to lure investors into buying and then the price will go down. However, Thuan does not believe in this theory, because bull trap prices are always different and each rally is called a bull trap.

The on-chain situation has not yet seen signs of large investors buying. Shown in Grayscale Premium index continues to decline recently and remains negative.

In addition, Coinshare’s data on the weekly investment statistics of mutual funds has also decreased over the past six weeks. However, the amount of crypto withdrawals by major funds those weeks was insignificant.

The Coin days destroyed indicator, represents the movement of large amounts of newly stored BTC during the block period or older BTC being moved. Since the beginning of August to date this indicator has not seen an increase showing no sign of BTC being sold from whales.

Although there are no signs of strong buying from large institutional investors, BTC continues to be purchased by investors who believe in this market. BTC’s deposit and withdrawal index from the beginning of August to now are almost the same. The price is up but there is no sign of BTC on the exchanges going up.

The market is currently not seeing signs of a market like the one seen in the early 2018 drop. We still see a number of altcoins nearing or hitting new all-time highs. Or Dogecoin, which often sees strong growth during the bullrun season, has also grown significantly in recent weeks and has a very large trading volume (up to more than 8 billion USD/day). The thriving information of projects like ADA or later ETH deploying ETH 2.0.

Big companies continue to enter the crypto space. Like Walmart deploying crypto-related managers. The New York Department of Financial Services (NYDFS) is looking for a Crypto Vice President. The role of deputy general manager in the Research and Innovation Department and specifically focuses on cryptos and blockchains. Intel has revealed that it has purchased 3014 shares of Coinbase exchange. (About $800K at current prices). Or, the company Kryptoin recently filed with the SEC to propose a real ETH-backed Ethereum ETF.

As can be seen, companies today want to participate in the crypto market in many different ways. And the crypto market is growing so fast that the US government is rushing to make relevant legislation.

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