Bitcoin price close to peaking? Not for now, the data shows that the true FOMO has not yet arrived
If this bull cycle is like 2017 or even 2019, then most of the investor “FOMO” and associated price gains are yet to come. Bitcoin (BTC) bears who thought $ 58,000 was the top of this cycle will be very disappointed, new investment data from previous bull markets shows.
Compiled by on-chain analytics resource Whalemap, the statistics covering BTC purchases of between $ 5 million and $ 7 million conclude that even at the latest all-time highs, Bitcoin was far from a “top macro.”
“No FOMO in sight” for BTC
During the bull market of 2017 and the shortest of 2019, Bitcoin recorded massive purchases of a similar size: $ 5-7 million. When investments of that amount reached a peak, the price action began to reverse, signaling the start of consolidation or a more intense pullback.
According to Whalemap, cash injections into that area have been far from their previous peaks this year, indicating that the current correction will likely be temporary and on par with typical BTC corrections during a bull run. “Previous macro highs have occurred when thousands of transactions worth $ 5-7 million each flooded the blockchain network. True FOMO,” the researchers tweeted on February 25. “Currently, there is no such FOMO in sight for BTC.”
The expectation of new acquisitions supports the existing data that came to light this week, in particular from Coinbase Pro, which has seen several tranches of more than 10,000 BTC leave their books for private or custodial wallets.
The first negative premium on Grayscale Bitcoin Trust (GBTC) since early 2017 may also point to the conclusion that the 2021 bull cycle still has much more room to run.
“Another major exit from Coinbase to 48k. US institutional investors are still buying $ BTC,” Ki Young Ju, CEO of monitoring resource CryptoQuant, tweeted on Friday. “I think the main reason for this drop is the shaky macro environment like the 10-year Treasury bond, not the whale deposits, the miners’ sales and the lack of institutional demand.”
The start of the trend change may be earlier than many think. In his latest analysis, cryptocurrency trader Rekt Capital looked at the 4-hour BTC / USD chart as evidence of a change of course. “Back off but still holding upper low. Turn $ 46,720 into support (black) and BTC will move higher. Strong bullish divergences are also appearing on 4HR,” he commented alongside an annotated screenshot of the chart.
Speaking to Cointelegraph, the Whalemap team noted that in the short term the Spent Production Profit Index (SOPR), which tracks overall market gains and losses, indicated that a deeper sell-off is out of the question, at least for now. .
“The hourly SOPR shows potential for at least a short-term rebound,” they said.
On Friday, there is also a major expiration of Bitcoin options, something that has put temporary downward pressure on BTC in the past. The day’s low of $ 44,150, some say, was simply an attempt to soak up liquidity before the next bullish leg.
“Yes, the market crashed after the ‘mega whales’ sold at the rally (as warned), but ever since then, they’ve been buying dips!” Observed the creator of the data analysis service of the order book of exchanges, Material Indicators. “With Stonks uncertain, I don’t know how many more dives there will be, but they are being bought!”
That “uncertainty” is compounded by worrying trends in bond yields, Cointelegraph reported this week, similar to pre-2008 Global Financial Crisis behavior.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.