Bitcoin Bullish Trend Unprecedented Despite Weakest Bear Market on Record
- Bitcoin has been experiencing a strong bullish trend
- The Bitcoin halving events have historically coincided with bullish markets but are not a catalyst for them
- The current bear market is the weakest in Bitcoin’s history, with only a 77% drop versus 84% and 86% drops in previous bear markets
- This bear market also featured three-wave corrections and a five-wave WXYZ structure, both of which have not been seen before in Bitcoin’s history
- Capitulation is characterized by a significant retracement without a new lower low.
Rise of Retail Investors as Bitcoin Nears Circulating Supply Maximum
- Bitcoin’s circulating supply is 19.5 million out of 21 which means there is less than 1.5 million left to be mined
- Active addresses that have received Bitcoin are 736,000 with 599,000 sending
- Retail investors are on the increase in wallets that contain 0.01 Bitcoin or more at an 11.94% up in the last year
- 51 million addresses have nothing in them and over half of all hosts have less than 0.001 Bitcoin
- 12.5 million wallets have 1%, 4.5 million have 10% and 1 million have one Bitcoin or more, showing a low-end retail investment and high net worth individuals taking profits respectively.
Decline of Bitcoin Whales Leaves Retail Investors Driving Upswing in Price
- The transfer of wealth is happening between lower and higher retail investors
- The number of whales with at least 1,000 Bitcoin is lower than November 2020 and October 2020
- Large investors haven’t yet shown an appetite for buying into Bitcoin despite the price increase
- Wallets with 10,000 Bitcoin or more have decreased by nearly 10% in the last year
- This indicates that these investors are likely selling their Bitcoin to retail investors who are buying up the BTC
- There is a substantial amount of BTC held at the retail layer which could cause a significant move to the downside if it enters the marketplace.
Crypto Market On Edge: 3 Million Bitcoin Entering and Wallets of 10,000 Plus Being Sold Off
- The 3 million Bitcoin entering the market could lead to a flood and cause prices of BTC to drop
- Large investors are not investing in the market and this could lead to a lack of interest in backing the price action
- Wallets holding 10,000 Bitcoin or more are being sold off, which could mean that more vulnerable investors are cashing out
- If there is a small bit of selling pressure, capitulation could be around the corner.