Even as the world of finance today finds itself dealing with not just central bank rate hikes but runaway inflation, everyone in the cryptocurrency industry was concerned. already on the impact that all these factors could have on Bitcoin.
Since Bitcoin is the first cryptocurrency in the world, it is quite obvious that each movement in its value has an influence on the entire market. Nevertheless, Bitcoin has unexpectedly been unusually low in volatility lately.
So, according to various reports, its value has not really seen a big change compared to traditional asset markets such as forex that can potentially attest that the value has finally found its bottom.
The increase in the number of Bitcoin holders despite the bear market
Several analyzes have already proven that in the midst of the current cryptocurrency bear market , the number of Bitcoin holders has been steadily increasing recently. This situation was already manifesting itself long before the whales showed signs of accumulation.
For analysts, this increase is a palpable sign that many investors in the crypto space continue to find solace in BTC. The majority of these new investors are indeed using Bitcoin as a store of value and a way to retain their crypto investments.
According to an analysis conducted on September 27, the number of Bitcoin holders has increased since last year with an estimated number of more than 4.5 million new investors.
According to crypto analysis site Finbold, 47% of Bitcoin holders remained profitable in September, despite the 60% fall in the price of BTC in 2022. For analysts, such a figure suggests that many investors in Bitcoin are not scared off by the ongoing bear market.
Nevertheless, the persistence of Bitcoin investors seems to be starting to pay off as new analysis reveals that there is a gradual trend towards the establishment of a floor for the bear market. This floor is manifested in particular by an accumulation phase for the whales.
The intervention of the whales
When we talk about a bearish floor, we generally refer to periods of slow and steady accumulation. These are good times not only for whales, but also for institutions and experienced investors.
In the report published by Glassnode, they compared two graphs describing respectively the bear market observed between September 2018 and April 2019 and the one we are currently experiencing which began in April 2022.
Following the comparison, one quickly notices that they are eerily similar, in that each of them endured a breakout event and then saw bear market rallies.
The report also reported that at the level of cryptocurrency exchanges, there has been a sudden spike in withdrawals from whales. This is a phenomenon that has always been a signal of accumulation, because most of the time the assets withdrawn are stored rather than sold.
Analyzes show that the whales have already withdrawn more than 157,000 BTC on the various exchange platforms. This amount is a new high since June 2022. Note, however, that despite the current accumulation of whales and the growing number of holders, the BTC token is still trading below the key indicators of the long-term price pattern.
What is the future outlook for the value of Bitcoin?
In the short term, it is difficult to predict with certainty the evolution of the value of BTC. During the weekend, the Bitcoin price retreated further to fall below $20,000. The cryptocurrency is currently trading at $19,116, down 0.60% on the day, according to data from CoinMarketCap.
Bitcoin is struggling to break through the resistance zone just below the $20,500 level. For most crypto experts, the cryptocurrency is once again heading towards the support zone which remains around $18,500.
They also believe that breaking this support could see the price of BTC tumble to new lows. However, at the moment, the markets are kept in a relatively stable price range.
Predictions suggest that Bitcoin could be heading for a new bull run for 2023.