Bitcoin's price rally has stopped since the cryptocurrency hit its third halve on May 11, but investor confidence in the cryptocurrency's long-term outlook remains strong, data shows.
Bitcoin investor sentiment remains high
The most widespread expectation for post-halving was that of an upward trend in prices after the low of $ 3,867 recorded in March. So far, however, the leading cryptocurrency by market value has not had the expected growth and has stabilized below $ 10.000 - the same level it was two days before halving.
Despite this, it appears from the data that larger investors, often called whales, continue to accumulate coins. On Tuesday, the number of bitcoin whales, i.e. individual investors holding at least 1.000 coins, was 1.840.
This means that there has been about 2% growth from the 1.811 level observed on May 1, according to data from blockchain analytics firm Glassnode. The algorithm recorded a recent high of 1.844 on Monday, a threshold last touched in November 2017.
This figure suggests investor confidence in the long-term bullish narrative surrounding bitcoin. Most analysts predict that the cryptocurrency will rise dramatically in the next 12 months thanks to the unprecedented fiscal and monetary stimulus provided by authorities around the world in the past three months.
Bloomberg analysts said they expected bitcoin to challenge the record high of $ 20.000 by the end of 2020 thanks to the increase in institutional participation. By the word whale, Glassnode means a cluster of addresses that are controlled by the same body on the network and are estimated through the clustering algorithms owned by Glassnode.
What is the next step for Bitcoin?
The current phase of Bitcoin, in the context of the global economic crisis, could end with a bullish breakout that exceeds $ 10.000, given the constant accumulation by investors and other factors. "We are bullish in the medium term with a target of $ 12.000" Matthew Dibb, co-founder of Stack, a provider of cryptocurrency trackers and index funds, said.
Dibb, however, believes the move to $ 12.000 would be preceded by a few weeks of irregular trading, which should not be ruled out as the correlation between bitcoin and stock markets has strengthened in the past week.
The cryptocurrency has plummeted sharply twice in the past week when stocks slipped due to new concerns about coronavirus. "Bitcoin is currently considered" risky business "and will likely be subject to continuing volatility as more data will be released in the coming days US economy, ”said Dibb.
And how are you going after the halving? Are you continuing to trade bitcoins with your favorite trading programs? Bitcoin Pro is one of these? Write us in the comments.
