Sirwin
Sirwin

Bullish BTC rally may continue: fundamental and intrachain data confirm this

By World Crypto | World Crypto | 30 Apr 2020


Over the past day, the bulls were able to cancel the fall of mid-March, pushing the BTC to $ 9400. The $ 1,700 price increase in Bitcoin was the catalyst for a strong rally in the markets of leading altcoins.

According to the latest data, the leading cryptocurrency rate jump occurred after the phase of extreme accumulation of the asset. This, in turn, signals that the current uptrend is supported by retail investors. Data on the number of wallets with a non-zero balance, as well as on the declining level of open interest in Bitcoin, seem to confirm this assumption.

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Retail investors show interest in Bitcoin

Bitcoin's latest uptrend seems to have been supported by retail investors. The momentum received on spot exchanges allowed the leading cryptocurrency to recover from levels below $ 3800 to highs of about $ 9400. After that, a natural correction occurred, and now Bitcoin is trading in the range of $ 8800-$ 8900:

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Interest in BTC could appear due to the strengthening of the fundamental foundations of the leading cryptocurrency, because next month there will be a significant reduction in rewards to miners. This event has a positive effect on the Bitcoin ecosystem, reducing annual inflation to an incredibly low compared to the global average.

The current recovery of the cryptocurrency may be more stable than the bullish bursts that have been observed over the past year. According to the data on the profitability of investments by crypto investors, over the past few weeks, many market participants have successfully implemented the “buy in the fall” strategy.

Representatives of the Glassnode analytical platform explained in a recent report that the volume of “profitable” coins in circulation increased by 9% compared with data from 2 months ago:

In general, the BTC market is more profitable than it was before the crash. This indicates that investors bought the asset in the fall. When BTC broke the $ 8300 mark, 73% of the BTC in circulation was profitable - it is 9% more than the last time when Bitcoin was trading at this price.

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                         Percentage of profitable BTC coins in circulation

Current BTC Rally May Be More Stable

An analysis of the latest statistics confirms the fact that it was retail investors who played a prominent role in the latest surge in the BTC rate.

For example, according to information from the Skew analytic platform, the level of open interest on the popular Bitmex platform has recently declined:

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                                        Open interest on BitMEX 

This indicates a lack of interest in cryptocurrency from institutional investors.

Add to this the incredible increase in the number of BTC wallets with a non-zero balance, and it becomes clear that it was the retail traders who became the catalyst for the latest rally.

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The fact that it was passive investors that formed the pressure on the asset is a favorable signal for the medium-term prospects of Bitcoin. As a result, the current uptrend may be more stable than the one stimulated by margin traders.

 

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World Crypto
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