Bitcoin’s price plummeted to as low as $91,000 earlier this week due to concerns over a potential trade war between the US and Canada, Mexico, and China. However, the flagship cryptocurrency quickly rebounded and now trades above $96,000 in a range-bound market.
Blockchain analytics firm Glassnode has been tracking Bitcoin investor behavior and found that retail investors are accumulating the asset at an accelerated rate of 10,627 BTC per day, representing a 72% surge compared to last year’s daily average. These small investors are buying Bitcoin despite its recent decline, indicating strong confidence in the asset’s long-term profitability.
On the other hand, Bitcoin whales – investors holding over 1000 BTC – are selling their assets at an unprecedented rate of 32,509 per day, suggesting a potential 9x increase in selling pressure compared to last year’s average. While this is bearish, it can be attributed to profit-taking rather than loss of confidence.
The recent accumulation surge by retail investors has helped mitigate potential drastic price declines. However, for Bitcoin to sustain its bullish structure, retail investors must maintain their current demand level. At press time, Bitcoin trades at $96,679 after a 0.84% decline in the past day, with trading volume surging by 17.22%. The asset’s price action suggests consolidation within the $95,000-$100,000 range, setting the stage for a potential breakout beyond the critical $105,000 resistance level.
Source: https://www.newsbtc.com/news/bitcoin/retail-investors-boost-bitcoin-accumulation-by-72-amid-intense-whale-selling-details