The value of Bitcoin may have fallen by 50% in an instant in March, but this did not stop traders from investing in the cryptocurrency market. In fact, a number of data sources show, the majority of investors are starting to prepare their Bitcoin positions, despite the uncertainty of the global economy.
Bitcoin Investors Immediately Make a Purchase
According to images shared by Nik Patel sourced from retail and crypto brokers based in the UK, users of this broker platform have been investing in Bitcoin long-term from the beginning. Even the site IG.com also illustrates that 78% of their users’ client accounts use a long-term investment in its cryptocurrency.
This is not the only evidence that shows that the majority of crypto market participants tend to be long-term investors.
Qiao Wang from Messari, a former institutional trader, recently shared the chart below, showing the Bitcoin order book on Coinbase Pro.
Although it does not represent other exchanges, it is clear that there are more traders who want to have this leading crypto than sell it. With almost 24,000 Bitcoin at order prices reaching $ 2,000 and 4,000 Bitcoin at $ 12,000. Wang also wrote that “there will be no longer-term bullishness than this” which refers to the data.
Price Immediate Return Sign?
Strong buying interest in Bitcoin shows that price increases are approaching, but this may be a sign that something bad is happening in the cryptocurrency market.
A great narrative was put forward by leading traders in both markets, the ordinary market and the crypto industry, that the opposite direction of the majority or the will of the market often leads to more appropriate trading to do. This is reminiscent of the quote submitted by Warren Buffet, “Fear when others are greedy and greedy when others are afraid.”
This quote seems to apply to the crypto market. Last December 2018, after Bitcoin declined by 50% in a month, there were many analysts who asked for cryptocurrency to return to the position of $ 1000, and some even put the expected return in the position of $ 800.
However, as soon as these predictions became mainstream, gaining popularity on social media forums, Bitcoin turned instead, towards prices higher than $ 4,000, instead of building new lows.
The same trend was seen when Bitcoin broke through $ 14,000 in mid-2019, with assets returning in touch markets instead of rising to new highs.