24.03.202101:56 Forex Analysis & Reviews: Will the trend of BTC/USD change?

Bitcoin is declining, but its upward trend continues to be relevant. Meanwhile, research shows that institutional investors have begun reducing their investment on the main cryptocurrency, while in contrast, the small ones continue to buy it.

CoinShares, a digital asset management company, stated that institutional investors have cut back their Bitcoin investments. For the period of March 15-20, their investments amounted to $ 99 million, against their total amount of $ 242 million a week earlier. And this is despite the fact that at the end of January, the inflow of investments in crypto funds from major market participants reached its record of $ 1.3 billion in one week.

It is worth noting that there was a decline in demand on the part of American companies, but companies from Europe and Canada increased their positions. At the same time, it was noted that the total volume of investments in cryptocurrency funds by institutional investors reached 57 billion US dollars.

As for investment products for the main cryptocurrency, trading volumes declined from $ 1.1 billion to $ 713 million last week. Nevertheless, interest in Bitcoin products remains high – $ 85 million was invested in them, while Ethereum funds and trusts accounted for $ 8 million.

Glassnode's analysts also present an interesting study. They noticed that the holders of the leading digital asset, with the amount of 10-100 bitcoins and 1000-10000 bitcoins began to reduce their stocks.

Huge Bitcoin owners of 1,000-10,000 have lowered reserves by 37 thousand BTC, while small owners of 10-100 have also reduced theirs by 56 thousand BTC.

On the other hand, an intermediate group of investors, owning 100-1000 bitcoins, showed themselves by increasing their portfolios. Contrary to the above-mentioned, they raised the reserves to 331 thousand BTC.

There is another interesting class of bitcoin holders that is increasing their volume. These are investors who own less than 1 BTC, whose total share accounts for 5.20% of all mined Bitcoins. The growth in the number of such investors sharply rose after the Bitcoin drop in March last year.

Now, let's discuss the technical part. Looking at the daily chart, it can be seen that Bitcoin has reached the upward support level of 29241.46 - 43,033.38 - 58340.66 on January 27. The bullish or bearish forecast for the BTC/USD pair will depend on whether the current price rebounds from this border or breaks through it. However, even if we test the strength of the trend support line, it will be too early to say that there is a shift in the trend. Thus, it will be necessary to wait for the actual breakdown, which may not happen in just a day.

As for the H4 chart, there is a formation of a correctional downward trend 61,759.10 - 59,869.35 - 53,225.61 from March 13. So far, its support has not yet been reached. However, based on the Fibo expansion, there are prerequisites for a local price return to the level of 100.

In the event of a price downward pullback from it, we can develop the local downward trend and the support for the daily upward trend will be broken. But if the resistance level of 100 by Fibo Expansion is broken, the price of BTC/USD pair may recover further towards the level of 58,340.66, marked with a red dotted line.