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February 26, 2021 @ 15:37 +03:00
Bitcoin (BTC) bears thinking that $58,000 was this cycle’s top will be sorely disappointed, fresh investment data from past bull markets shows. Compiled by on-chain analytics resource Whalemap, statistics covering BTC buys of between $5 million and $7 million conclude that even at recent all-time highs, Bitcoin was far from a “macro top.”
During the 2017 and shorter 2019 bull market, Bitcoin saw mass buy-ins of a similar size — $5-7 million. When investments of that amount hit a peak, price action began to reverse, signalling the start of consolidation or a heavier retracement. According to Whalemap, cash injections in that area have been far from their previous peaks this year, indicating that the current correction will likely be temporary and on par with BTC’s typical corrections during a bull run.
“Previous macro tops have occurred when thousands of transactions worth 5 to 7 million dollars each were flooding the blockchain. True FOMO,” researchers tweeted on Feb. 25. The expectation of further buy-ins supports existing data that came to light this week, notably from Coinbase Pro, which has seen multiple tranches of over 10,000 BTC leave its books for private or custody wallets.
The first negative premium on the Grayscale Bitcoin Trust (GBTC) since early 2017 may also point to the conclusion that the 2021 bull cycle still has a lot more room to run.
Bitcoin price ‘macro top’? Not so fast — data shows the real FOMO isn’t even here, Cointelegraph, Feb 26