Bitcoin is a digital currency that was invented in 2009 by someone under the pseudonym “Satoshi Nakamoto”. It’s main advantage is that it’s decentralized, meaning that there’s no central authority controlling it. Since it’s decentralized, it’s not subject to inflation like fiat (government-issued) currencies are. Bitcoin’s price has been increasing steadily since it’s creation, and the digital currency is gaining popularity across the globe. However, there is a significant risk that the price of Bitcoin could fail to increase at an even faster rate going forward, as it’s recent price spike was the result of a “reset” that was implemented by the community.
The bitcoin price hasn’t gone up in a while because the bitcoin supply was increasing faster than it was mining new coins. “Here’s the rub. Bitcoin is a deflationary currency. The supply of bitcoin is increasing at a faster rate than the rate at which new bitcoin are mined. Therefore, the bitcoin price is not going up.”Bitcoin (BTC) is seeing a shift in investor behavior near the $30,000 mark, and this trend only needs to continue to push prices higher.
According to the Ecoinometrics channel monitoring source of 13. July is the only way BTC/USD can go up if the Hodlers continue to accumulate coins.
Interesting data point to a new application
Ecoinometrics has analyzed who has bought coins since the last bull market began in October 2020, and has shown that there is a significant change from last year.
Initially, accumulation was done by small investors, called small fish. It started when bitcoin broke through the previous all-time high of $20,000 and continued to a new high of $64,500.
At the $20,000 mark, however, large investors began to sell, but not in sufficient numbers to stop the bull market.
Whales, meanwhile, increased selling pressure once BTC/USD hit the $30,000 mark. Analysts therefore said that the turning point was at the highest prices in May.
Apparently $30,000 is the key that has ended the trend of hoarding whales, according to Ecoinmetrics.
The reason why selling pressure eventually took over could be due to the whale of a sentiment that bitcoin is rising too much and too fast and therefore the market is considered volatile.
Now that the $30,000 level has been reached again, there is no respite – large and small investors are buying again.
Whales and small fish began to increase again, while other categories became neutral, according to the findings.
If this interpretation is correct, then what we get out of this correction is a reset. If this accumulation trend continues, bitcoin can only go in one direction: up. Bitcoin kit behavior table. Source: Ecoinometrics/Twitter
A glimmer of hope
This perspective is a refreshing counterpoint to the bearish tone of many market commentators in recent weeks.
Related: The price of bitcoin will reach a breakout within a week, according to a trader aiming for $38,000.
Even the classic stock flow pricing model has raised concerns about its invalidity, which is disputed by its creator, and online trading is characterized by low volumes and a lack of firm support above $30,000.
Calls for a serious price hike continue unabated, although the price fell below $32,000 on Wednesday.
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