Coinbase Analysts Highlight Factors Restricting Bitcoin Price Surge

• Coinbase analysts have scrutinized factors restricting the rise of Bitcoin prices.
• Disparity between buy and sell orders on Coinbase is becoming more pronounced.
• Analysts observe that heightened sell orders are largely concentrated around 5% to 10% of the average price, hindering upward movement.

Explore the factors influencing Bitcoin’s recent price trends and market dynamics.

Bitcoin Price Surge Hampered by Sell Order Concentration

Coinbase’s financial experts, David Duong and David Han, have identified an increasing imbalance in the exchange’s buy and sell orders. According to their analysis, the preponderance of sell orders is accumulating within a range of 5% to 10% around the current average price. This significant clustering of sell orders is effectively stalling Bitcoin’s ability to appreciate in value.

Persisting Sell Pressure on Bitcoin

The analysts further highlighted a sustained sell pressure on Bitcoin influenced by external financial activities. Drawing from Arkham Intelligence data, it was revealed that Mt. Gox disbursements have introduced approximately 50,000 Bitcoins into various exchanges since July 5th. Despite these distributions, the bankruptcy administration still retains a balance of about 90,300 Bitcoins, contributing to the ongoing market pressure.

Macro-Economic Factors Buoying Bitcoin

Nevertheless, Coinbase’s analysts noted a counterbalance provided by macro-economic developments in the United States. Specifically, they pointed out that the depreciation of the U.S. Dollar Index (DXY) by 2% since the beginning of the month has played a supportive role in Bitcoin’s valuation. With Bitcoin often pegged against the U.S. dollar, a weaker dollar tends to be advantageous for Bitcoin prices.

Conclusion

In summary, while Bitcoin’s price continues to experience downward pressure due to concentrated sell orders and the distribution of Mt. Gox Bitcoins, the depreciation of the U.S. dollar provides some positive momentum. Investors should closely monitor these dynamics, as they could present short-term trading opportunities within the current market landscape.