Bitcoin extends losses below $57,000 as market mood sours

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Cryptocurrencies,Technical Analysis,ETF

Bitcoin (BTC) recovered on Wednesday after retesting its daily support level of around $56,000, but the 2.15% decline on Thursday suggests this rebound may be fleeting.

Bitcoin price approaches a crucial support level at $56,000; a close below could see its downtrend persist. Lookonchain and Arkham intelligence data show that institutions are selling their BTC holdings. On-chain data shows a bearish picture, such as falling daily active addresses and decreasing Coinbase premium index. Bitcoin recovered on Wednesday after retesting its daily support level of around $56,000, but the 2.15% decline on Thursday suggests this rebound may be fleeting.

Coinbase Premium data is one of the indicators that shows a sign of whale accumulation, as the Coinbase Pro platform is considered the gateway for institutional investors to purchase cryptocurrencies. In the case of Bitcoin, the index has been declining since August 23 and fell from 0.0130 to 0.0001 from Monday to Wednesday, trading below its 14-day Simple Moving Average at 0.0143. This indicates that whales are continuously selling at a lower premium.

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