Wealthy investors in the cryptocurrency market are turning to Bitcoin (BTC). The reason for this “turnaround” is that the price of BTC is steadily heading upwards, having already surpassed $50,000. In this article, we present an explanation of this trend, as well as a thorough analysis of what is currently happening with this still most popular cryptocurrency in the world.
Investors are back to investing in Bitcoin
Data collected by the cryptocurrency-focused website, Ecoinometrics, suggests a new trend: a renewed, eager investment by both small and large investors in Bitcoin. An upward trend was noted among addresses controlling holdings between 1,000 BTC and 10,000 BTC, suggesting that wealthy investors find the current price of BTC attractive enough to place upward bets.
A similar sentiment from the rest can be seen among small investors with holdings of less than 1 BTC. Ecoinometrics report that they have been accumulating BTC tokens since June, and over a period of time, they have also seen selling pressure on BTC coming from the whale side. Their buying sentiment coincided with a price rise to $50,000, a key psychological resistance level.
Blockchain platform Glassnode’s supporting data
Blockchain analytics platform Glassnode also observed an increase in buying sentiment among small fish, or small investors. More specifically, the number of addresses holding at least 0.1 BTC reached a three-month high of 3,231,069 on Monday (August 30, 2021), further confirming the accumulation data above.
“More than 1.65 million BTCs now have a cost basis on the network in the range of $45k to $50k,” the platform wrote on Twitter on Monday.
What is next for the Bitcoin price?
For now, Bitcoin is holding above the “green wave.” However, there are warnings of whales and “small fish” as the Bitcoin market waits for a clear breakout move above $50,000.
At the moment, the BTC/USD exchange rate has been consolidating under the mentioned resistance level since Friday (September 3, 2021). Just for this reason, the BTC/USD currency pair has also found temporary support above $47,000, which more or less coincides with the 20-day exponential moving average.
“Small fish” have been mercilessly accumulating Bitcoins (BTC) in the $40,000 to $50,000 range, with no signs pointing to a possible trend reversal over the past 30 days. On the other hand, the whales went through a period of capitulation as Bitcoin entered the $45,000-50,000 range.