- Famous analyst Root explains that this is due to a shortage of short-term holders (STHs).
- Crypto Fear and Greed Index has fallen into the “extreme fear” zone.
In the wake of Bitcoin’s halving cycle, some investors have lost trust in the currency’s ability to reach new highs. While spot price action is bearish, on-chain indications are still optimistic. As a result, many investors who have stayed in the market believe that BTC/USD will rise significantly in the coming months.
Small Number of Speculative Bets
Famous analyst Root explains that this is due to a shortage of short-term holders (STHs). Even at the most recent all-time high of $69,000 in November 2021, there were only a small number of speculative bets, in stark contrast to the all-time high reached during the prior halving cycle in December 2017. Long-term investors are currently supporting the market, not new short-term holders trying to “buy the drop.” For example, for a brief period on Tuesday, April 19, Bitcoin surged above $41,000 before settling at $40,000, reversing course, and is finally trading above $41K.
In the wake of turbulent markets, Bitcoin retreated. Not only did Bitcoin see a 4 percent gain, but the whole cryptocurrency market did as well, with all of the significant cryptocurrencies up in the air. Moreover, famous analyst Crypto Rover said that the 12-hour Bullish Divergence has an average return of roughly 30%. Speculating that the price of Bitcoin may rise to $50,000 by the end of this week.
BIG #BITCOIN PUMP INCOMING! 🔥
— Crypto Rover (@rovercrc) April 19, 2022
The average return from this 12h Bullish Divergence is around 30%. Suggesting that #Bitcoin could just trade back up to $50,000 near the end of this week! 🚀 pic.twitter.com/DkEWy6lzlr
Crypto Fear and Greed Index has fallen into the “extreme fear” zone, indicating that investors are still on edge. Bitcoin (BTC) and most significant altcoins started the week on a soft note. Although the crypto price movement has remained negative, the dropping balance of Bitcoin on the crypto exchanges suggests that long-term investors are unbothered and continue to acquire at any chance available.
