Recent data show that long-term investors have begun to accumulate large amounts of bitcoins during the recent crash. Despite bullish indices, analysts continue to warn of the risk of breaking the $ 30,000 support and falling prices to the $ 20,000 level.
to the the report Coin Telegraph, the price of bitcoin has remained almost unchanged in recent days. Yesterday, each bitcoin was traded for about $ 34,000. However, the price of Bitcoin is still 50% lower than its historical peak in mid-April, when the price reached close to $ 65,000. But this big downturn has not changed investors’ perceptions of Bitcoin’s long-term uptrend.
The market has noticed a shift in the behavior of long-term investors in the widespread accumulation of bitcoins, according to one of the hallmarks of GlasNow’s analytics website, called Liveliness. Hodling strategy, which has been attributed to a common misspelling since 2013, shows investors’ indifference to the downturn in the market.
Liveliness is an indicator to show the ratio of the total number of coins not spent to the total number of coins in the network. Unspent coins are units of bitcoins that have not been spent for a long time or have remained so-called intact. This index varies between zero and 1; The number 0 indicates a decrease in supply and an intensification of accumulation by investors. In addition, the approach of this index to zero indicates that the volume of accumulated coins has exceeded the volume of unspent coins.
However, it cannot be said that an increase in the number of coins not spent necessarily indicates the formation of a downward trend. For example, between November 2020 and November 2021, both the Liveliness Index and the price of Bitcoin increased, indicating a decrease in accumulation by investors. However, the Bitcoin market did not decline and was quite It was bullish.
This discrepancy could be due to the increase in bitcoin trading volume earlier this year. According to Bitcoinity data, Bitcoin trading volume in the first quarter of 2021 reached more than $ 6 trillion, while the trading volume of this digital currency in the fourth quarter of 2020 was estimated at $ 1.14 trillion. Has been.
Thus, it can be said that while long-term investors were selling their bitcoins from November 2020 to April 2021, the increase in the volume of transactions in digital currency exchanges caused the selling pressure to be absorbed by small traders. However, as digital currency market analyst Willy Woo has said, with the arrival of April, the increase in sales volume overcame the upward pressure of the bitcoin market.
In a July 2 newsletter, Willie Woo said that hesitant investors were selling their assets, citing the Rick Astley index, which tracks bitcoin exchanges between strong and hesitant investors. They are long-term investors.
It is clear that long-term investors are rapidly accumulating the currencies of hesitant investors. In this game, it is only a matter of waiting, until its effects on the price are reflected. Data with confidence accumulated on the floor [قیمتی] Show.
While the price of bitcoin remains above the $ 30,000 support level, the tendency for bitcoin to accumulate is also increasing.
As the digital currency market collapsed, the price of Bitcoin fell to $ 30,000 on May 19. Since then, the price candle has hit this level at least 4 times to see a strong uptrend in the future. The $ 30,000 level has now turned into price psychological support, which, if broken, could push the price down to $ 20,000.
Joel Kruger, forex strategist at LMAX Investment Group, said last week that prices could fall as low as $ 20,000 as bitcoin remains under pressure from global sentiment. The analyst noted growing concerns about the spread of the Delta Virus Covid-19 strain that has caused global markets to collapse.
It is foolish to rule out the possibility of prices returning to the floor in June. I think this scenario could be associated with the risk of the Bitcoin price falling to its old all-time high of $ 20,000. But at that level [۲۰,۰۰۰ دلار] We will see strong support.