A new round of increased interest of regulators in cryptocurrencies and restrictions in the work of a number of crypto exchanges led to a correction of Bitcoin from $ 50 thousand to $ 40 thousand. However, a number of indicators indicate the imminent end of the correction.
Extreme levels of the fear and greed indicator indicate an impending trend reversal. Greed was at its peak when Bitcoin was going for $60k, and it was replaced by fear at a price of $30k. Now the level of fear is again close to summer lows, which supports current prices.
The most cautious holders are participants with small wallets (owning less than 10 BTC). After the May fall, they returned to buying, bringing the ownership share to a historic 13.9%.
But whales (≥ 1K BTC) continue to accumulate their reserves.
Their number has decreased by 15% since February, but the stocks of those remaining in service have increased on average from 3,236 BTC in February to the current 3,722 BTC.
A striking example of a true hodler is MicroStrategy (NASDAQ:MSTR), which in September bought an additional 5050 BTC for $48 thousand. Now the total stock of the company is 114,042 BTC (~ $ 5 billion), and the average purchase price of the coin is $27,713. As CEO Michael Saylor wrote: “If I had chosen gold over Bitcoin last year, it would have resulted in multibillion-dollar losses.”
The time is really right: Jerome Powell at the last press conference went against the expectations of market participants and once again did not indicate the date of the curtailment of monetary incentives. The regulator continues to print fresh dollars in the amount of at least $ 120 billion per month, which leads to a weakening of the US currency against most financial instruments