Major cryptocurrency investors don’t miss the opportunity to buy Bitcoin during the next collapse of the coin market. According to the Material Indicators platform, the number of orders – or applications – for the purchase of BTC in the amount of $ 100,000 or more on the Binance exchange has grown to an all-time high.
In other words, the demand for bitcoins against the backdrop of a pullback in the price of the main cryptocurrency is only increasing, which indicates a continuation of the bullish trend and investors expecting further growth.
We checked the latest data: today Bitcoin started the day at the level of 54 thousand dollars. The cryptocurrency rose 0.8 percent overnight, bringing its market capitalization to $ 1.008 trillion.
At the same time, it is important to note that BTC reached the level of $ 55,748 at night, after which it sank. The cryptocurrency has not reached this level since February 23.
Who buys Bitcoin
Big BTC purchases are happening more often now than ever. That is, organizations, companies and simply individual investors with large deposits are actively buying coins from investors of «smaller caliber».
Recall that most often the purchase of coins actually occurs from less experienced investors and traders. The latter, due to a lack of experience, often succumb to emotions on market crashes and want to save their money, which supposedly disappears. Therefore, they get rid of cryptocurrency out of fear, thereby fixing a loss and losing money.
However, they do not take into account several points here. First, volatility – that is, dramatic changes in the value of cryptocurrency assets – is a common feature of this niche, so you need to come to terms with it. That is, large projects like Ethereum and Bitcoin until this time not only returned to their historical maximums, but also updated them. Secondly, most often the rate bounces exactly when inexperienced traders get rid of their assets. This happens due to the fact that the number of sellers eventually runs out, and buyers take advantage of the moments and replenish their stocks. Hence the growth.
As a result, after all this, newcomers to the market sometimes open the same positions, but at a higher price. This way you can lose money even during the growth phase of the industry.
Bitcoin price chart (above) against the background of changes in the number of different BTC purchase volumes
Earlier, Material Indicators experts expressed concern about the rise in digital assets this week, arguing that major players may «sell» coins amid the latest price spike. In this scenario, the market could face another wave of correction. As a result, this did not happen, in connection with which analysts noted that macroeconomic factors had a different impact on Bitcoin than previously expected.
In addition, the latest Bitcoin pullback coincided with the withdrawal of over 12,000 BTC from the Coinbase Pro cryptocurrency exchange. Recall that usually the withdrawal of coins signals the conclusion of a large OTC deal with large investors, that is, some successful organization has once again acquired a large batch of bitcoins, reports Cointelegraph.
Note that this has been happening quite often lately. Yesterday we learned that the Norwegian holding company Aker ASA has created a special unit to work with cryptocurrencies and investments in blockchain startups. They began their journey into the niche of advanced financial technologies with the purchase of 1,170 bitcoins for $ 58.5 million. Read about the vision of the giant’s leadership in a separate article.
During the current crash, Bitcoin dropped about 26 percent, hitting a local bottom at $ 43,000 . During the previous phase of growth in 2017, the main cryptocurrency retraced at least seven times on average by 30-35 percent before peaking at $ 20K .
Large drawdowns in the value of BTC are visible on the chart.
We believe that analysts’ data indicate a positive market. Judging by the activity of traders, they have no doubts about the further growth of the first cryptocurrency and the industry as a whole. And if the majority of investors come to this point of view, then the period of BTC correction may really end. However, for the final confirmation of this version, Bitcoin would definitely not hurt to update a new historical maximum. Let us remind you that it is at the level of 58,640 dollars.