Bitcoin’s market depth on Coinbase has recently shown a greater imbalance between bids and asks, with a higher number of bids. According to Coinbase analysts David Duong and David Han, this increase in total bitcoin sell orders is particularly concentrated within 5% to 10% of the mid-price on the exchange, which is limiting a greater price upswing.
“The data suggests that we may be seeing some profit taking at current levels and/or a greater willingness by market participants to sell into price appreciation, which may limit price moves to the upside,” the Coinbase analysts said in a Friday report.
Bitcoin sell-side pressure remains
Duong and Han pointed to Arkham Intelligence data that showed a specific factor driving recent bitcoin sell-side pressure. “Mt. Gox repayments remain a source of pressure, following the distribution of around 50,000 bitcoin to exchanges since July 5, leaving the trustee with a balance of 90,300 bitcoin,” they said.
However, they added that the digital asset was finding some relief from a shift in the U.S. political landscape. “This has allowed the token to catch up to the sharp U.S. dollar devaluation in July, with the multilateral DXY index down over 2% month-to-date, and bitcoin is often valued in the U.S. dollar, so it tends to benefit from a weaker U.S. dollar,” they said.
Bitcoin resilient despite stocks tumbling
The largest digital asset by market capitalization is still remaining resilient in the face of a capital rout in U.S. stock indices, particularly in the tech sector. “Bitcoin remains resilient especially against the backdrop of continued Mt. Gox supply and tanking equities,” QCP Capital analysts said.
U.S. stocks opened lower on Friday, with the Dow Jones Industrial Average dropping 122 points, or 0.3%, to 40,534 after the opening bell. The Nasdaq Composite also seemed poised for further losses after experiencing its worst two-day stretch since October, falling by 41 points, or 0.2%, to 17,843.
Bitcoin’s price has increased by 3% over the past 24 hours and is now trading at $65,776 as of the time of writing, according to The Block’s Price Page.
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