Bid Side In Bitcoin Disappears Amidst Jittering “Macro Environment”

Tony "The Bull" Severino

4 years ago

3 mins read

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Bitcoin is trading more than $10,000 per coin less than the current high, after according to one crypto analyst, the “bid” side of market has disappeared, exposing the cryptocurrency’s current weakness.

The lack of buying currently could be due to what another analyst calls a jittering macro environment, referencing the stock and bond markets that have seen volatility as of late. Here’s what else is going on in both traditional and crypto markets that could have investors waiting to pull the trigger currently.

Bitcoin Bid Side Weakens, But There’s Still No Sellers To Be Found

The ongoing Bitcoin uptrend has been largely driven by natural supply and demand dynamics, exacerbated by a limited and ever diminishing supply.

At 21 million BTC total and what few coins come into the market slashed in half every four years, price appreciation has always been in the cryptocurrency’s favor, and will continue to be so.

https://twitter.com/byzgeneral/status/1365266919717298179?s=21

But as strong as the cryptocurrency’s uptrend has been, a complete lack of “bid side has left Bitcoin “weak,” according to one crypto analyst’s take on the order books of top exchanges.

The same analyst says there’s no resistance, either, simply due to the lack of ask side of the market as well. But without bids, Bitcoin still can’t go up and is at risk of a deeper correction.

The "jittering macro environment" could be weakening the cryptocurrency's advance | Source: BTCUSD on TradingView.com

Massive Institutional Demand Unfazed, Despite “Jittering Macro Environment”

Each passing week, Coinbase outflows have topped 10,000 BTC or more, and even this week during the selloff, another 13,000 BTC left the cryptocurrency exchange.

The selling, according to Crypto Quant CEO Ki Young Ju, is not due to miners, or a lack of demand, but a “jittering macro environment.” Ju points to the recent volatility in “the 10-year Treasury note” as one of the accompanying macro economic factors.

Elsewhere in markets, the resurgence of GameStop shares has the stock market cautious once again. The recent downside could have been due to large investors derisking and lowering leveraged positions.

Bitcoin as a speculative asset is highly susceptible to macro economic factors driving overall market sentiment. Any “jittering” elsewhere has left the cryptocurrency with $10,000 less per coin after the pullback from recent highs. Things could also get worse before they get better, as March is the worst month in the crypto asset’s short ten year history.

However, if institutional demand stays as high as it has been, the lack of supply could even eventually outweigh any macro issues limiting price action currently.

Featured image from Deposit Photos, Charts from TradingView.com

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

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Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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