Bitcoin (BTC) Price Analysis: Will the Real Bears Please Stand Up?

Bitcoin bulls have had a torrid week. Looking at the price action in the daily chart, not only is the coin down roughly 7% after breaching $70,000 early this week, but cracks are beginning to form.

Bitcoin has been on a wild ride this week, and after hitting highs of $70,000 earlier in the week, the coin has slipped and could now be headed for further losses.

The world’s largest cryptocurrency dropped to lows of $63,000 on August 4th, and after showing signs of recovery, the coin has failed to break past the $65,000 level. At the time of writing, BTC is trading at around the $63,300 level.

Bitcoin price daily chart - August 4th

Now, one analyst is predicting that the upcoming sessions will be bearish, and that Bitcoin could continue dropping. According to the analyst, a X analysis shows that bears are in control, at least for now.

The analyst points out that the weekly clusters of liquidation volume have been increasing, which coincides with the recent price drop over the past trading day. With this signal printing out, the analyst is convinced that bears will continue pushing the coin lower, at least in the next week.

As this happens, the net taker volume across leading perpetual exchanges remains negative. The net taker volume, which on-chain analysts use to gauge market sentiment,ناء is shifting based on the market valuation.

When the net taker volume slides into the negative territory, it indicates that most traders are taking short positions. According to the analyst, prices might recover only when this reading turns green, allowing bulls to take charge of the market.

Looking at the Bitcoin daily chart, buyers have support at around the $63,000 level. However, a level higher, the zone between $60,000—a round number—and $63,000 will be critical.

If bulls hold this level, preventing sellers from pushing prices lower, the chances of Bitcoin bouncing back will be high. Any expansion above $70,000 would be crucial and in alignment with the bullish trend established in the third week of July.

Institutions Accumulating: Spot ETF Issuers Control Nearly 300,000 BTC

Despite the current weakness, institutions are still keen to gain exposure to Bitcoin. According to data from Ecoinometrics, since the approval of spot Bitcoin ETFs in the United States, leading issuers, such as Fidelity and BlackRock, have accumulated nearly 300,000 BTC.

On August 1st, Soso Value data showed that all spot Bitcoin ETFs hold over $60 billion worth of BTC. On July 31st alone, BlackRock purchased nearly $21 million worth of BTC.

Even so, there were major outflows from other issuers, mainly Fidelity. That institutions are doubling down, accumulating the coin is overly bullish for Bitcoin, especially in the long term.

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