After Bitcoin’s recent upturn in price reaching over $40,000 with many investors drawing on profits, the top crypto asset has again seen a decline. At the time of writing, Bitcoin was trading at $37,697.71 ( 3 August 08:30 AM UTC) with a 24-hour change of -2.17%.
Many have cited regulatory concerns in the U.S. and China as the reason for the pullback from investors. Katie Stockton, managing director of Fairlead Strategies wrote in a newsletter:
“We expect the pullback to mature in one to two weeks near the 50-day moving average around $34K, after which bitcoin is likely to clear $42.6K for a revised upside target near $51K.”
Apart from this, large amounts of Bitcoin were withdrawn from exchanges over the past week indicating investors’ preference of holding on to it rather than trading.
Talking about Bitcoin’s futures Contango, Arcane research, a crypto-related research provider, wrote:
“Last week’s short squeeze led a large contango to open in the futures market, but as bitcoin failed to break out from its range the contango has declined in recent days.
The CME contango remains substantially below the unregulated exchanges, suggesting that the institutional investors remain more cautious than the crypto native traders.”
Contango is a term used when Bitcoin futures price is higher than the spot price.