Does Bitcoin’s record run continue? – „Gate-closing panic“ has not yet set in
The „FOMO“ of the 2017 and 2019 uptrends gives an indication that investors have not yet panic-bought.
Pessimists hoping that Bitcoin (BTC) has peaked at US$58,000 in the current uptrend are likely to be disappointed, as new Crypto Profit data suggests that the run to the top will soon continue.
As blockchain data service Whalemap shows, the number of transactions worth US$5-7 million suggests that the recent record high was not yet the tip of the iceberg.
No FOMO in sight
Indeed, during the uptrends of 2017 and 2019, there were significantly more purchases of this size.
When the number of transactions peaks at this level, it is usually a sign that an uptrend is coming to an end.
However, according to Whalemap, the number of purchases in this range is well behind the peaks of past uptrends, which probably means that the current record run still has room to run.
„In previous uptrends, a peak has occurred each time there have been mass transactions worth $5-7m. True FOMO“, as the analysts of the data service write to that effect. And further:
„Currently, we do not see FOMO for Bitcoin yet.“
FOMO is the „Fear Of Missing Out“ among investors. It occurs when they are literally „afraid“ of missing out on something, i.e. a kind of gate-crashing panic. Since this does not seem to have occurred yet, it may be assumed that the current upward trend will continue.
Large transactions compared to price performance. Source: Whalemap/Twitter
This assessment is supported by the fact that several large withdrawals were made this week on crypto trading platform Coinbase.Pro, which specialises in professional investors.
„Another significant sell-off on Coinbase at a price of US$48,000. So institutional investors continue to buy bitcoin,“ as Ki Young Ju of market research firm CryptoQuant writes in this regard. To this he adds:
„I see the main reason for the current downturn in macroeconomic factors. Particularly sharp increases in the 10-year US Treasury bond yield could be the trigger.“
Further evidence of the continuation of the uptrend could be provided by the price differential of the Grayscale Bitcoin Investment Fund (GBTC) to the bitcoin price, as this has slipped into negative territory for the first time since early 2017.
Is the upswing imminent?
The reversal to positive could come pretty soon in this regard, which the crypto trader under the pseudonym Rekt Capital reads on Bitcoin’s 4-hour price chart.
„It’s going down, but we can consolidate at a higher low. If we can establish the $46,720 level as support, then it will go back up. In the 4-hour chart, we also see a strong positive divergence for bitcoin,“ as he explains accordingly (see below).