New report: El Salvador Bitcoin pump failed to attract smart money, for now
June 10, 2021. Summarized by summa-bot.
Compression ratio: 49.6%. 2 min read.
Bitcoin market sentiments remain skewed to the downside even after it becomes a legal tender in El Salvador following a parliamentary nod.
Bitcoin (BTC) logged its best daily performance on Wednesday since Feb. 8, the day Tesla announced that it had added $1. 5 billion worth of BTC to its balance sheet.
He also announced that El Salvador would use excessive volcano energy to mine the cryptocurrency, weeks after Tesla CEO Elon Musk ended its Bitcoin payment support over its alarming carbon footprints.
But El Salvador's benchmark step to legitimizing Bitcoin as an upcoming store-of-value failed to generate bullish reactions from "smart" investors, according to Lennard Neo, head of research at Stack Fund, a Singapore-based crypto investment fund.
The chartered financial analyst said that Wednesday's upside sentiments in the Bitcoin market remained weak even after the El Salvador news.
The popular Fear & Greed Index pointed towards "extreme fear," while contracts of Bitcoin derivatives from smart money were net short during the BTC/USD's 11. 98% rally.
Ben Lilly, an analyst at Jarvis Labs, provided further anecdotes on why bearish continuation remains a real risk even as Bitcoin posts its best daily candles in months.
The analyst conceived the make-believe character last year to refer to a Bitcoin wallet owner that, according to him, played a major role in dumping and pumping BTC/USD markets on various occasions, including March 2020 crash.
Lilly warned that the anonymous trader still sits atop a Bitcoin stash that he might dump later.
The CVD indicator added to the Bitcoin market's bearish bias.
Lily said that market movers are not behind the El Salvador Bitcoin price pump, noting that "they are letting price move about unencumbered. "
The move uphill suggested that traders offloaded their altcoin positions to seek opportunities in the Bitcoin market, especially as the cryptocurrency became an official legal tender in El Salvador.