Bitcoin Retail Reaches Second-Highest Buying Rate In History. Good Or Bad?

Bitcoin retail rates for buying have increased in recent months. These data show how many tokens are being purchased by Bitcoin retailers and the prices at which they do so. The metric hit an earlier all-time high during 2017/2018, right as the bull market was peaking. The same thing is taking place again and retailers are increasing their purchases. We will see if it correlates with another bull market that pushes the digital asset to a new all-time peak.

Retail Investors Rise

Will Clemente, market analyst for the crypto-market posted a Twitter chart showing that cryptocurrency is being purchased by retail investors at the second highest rate ever recorded. When viewed from the standpoint of when retail purchasing surged above this level, it is quite significant. It is not just good news, even historical perspective. 

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Clemente observed that the macro tops coincide with most retail investors’ spikes in holdings. These investors have sometimes taken a more strategic view to buying, however. This one is an anomaly, according to the analyst.

This is the most crucial part. There isn’t any clear indication of what price will do in response. It can be either a bullish signal, which could lead to another top or a bottom. 

“Either we are doomed or retail has chosen to use Bitcoin as a savings account and opt out of the fiat system,” said Will Clemente. “The optimist in me hopes it is the latter.”

Bitcoin ready for another rally?

The value of bitcoin has also risen due to the Bitcoin halving event. There are also mid-halving moments that could have a significant impact on the value of the digital asset. Most often, bitcoin’s peak occurs between 515- 545 days after a halves event. Since the start of 2018, bitcoin has passed this mark. The new year brought about the mid-halving event. 

Bitcoin price chart from TradingView.com

BTC drops to $45k | Source: BTCUSD on TradingView.com

If history is any indication, this event could have dire consequences for bitcoin. Following July 2018, bitcoin’s price plummeted dramatically in the aftermath of its last mid-halving. There is no secret about the fact that there was an extended bear market.

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Given its failure to breach the $50K resistance, Bitcoin seems to be maintaining this historical pattern with current market momentum. SantimentThe April 11th event that will see the mid-halving occur, notes BTC. BTC must either rise above the next resistance, or it could fall back to $30,000 again.

Featured image taken from The Crypto Basic Chart from TradingView.com

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