The analysis of Bitcoin blockchain data is instructive. Thanks to this, different buyer profiles are discernible. There is a significant difference between entry levels for buyers looking to position themselves for the long term and short term investors. In addition, certain key levels of attention crystallize in particular. Explanations.
Short-term holders skip as they approach $50,000
Thanks to the data of the transactions carried out on the Bitcoin blockchain, accessible to all, it is possible to analyze the behavior of the buyers. A graphical distribution of Unspent Transaction Output (UTXO) levels provides insight into investor activity based on BTC price.
Regarding short-term purchases, it is interesting to note that they are mainly made between 17,000 and 48,000 dollars. A job is considered short-term in these data when it is held for less than 155 days.
It can therefore be concluded that Bitcoin purchases are usually scarce near $50,000. It is therefore a level to protect for long-term investors.
The hodlers have up to 60,000 dollars present
As for long-term holders of Bitcoin, it should be noted that these are still mobilized to buy up to $60,000. We also note that the buying pressure decreases significantly above this level.
In addition, a category of accommodation of Bitcoin, called mature, stands out. The latter now make up the largest share of long-term investors who remain holders. They are characterized by standing below $18,000. These buyers, having invested before the end of November 2020, are the largest segment of accommodation of bitcoin today. On the other hand, it should be noted that the largest share of current holders (11.5%) have positioned themselves on BTC around $17,000.
Whether investing for the long term or buying speculatively, a price range targets buyers. In fact, we can see that the buying pressure is increasing on both sides, ie between 17,000 and 24,000 dollarsabsorbing most of the demand.
At what levels are trading platforms used?
On the side exchangesit may be surprising to note that they mainly invest in Bitcoin between $30,000 and $49,000. This information is not without importance. It provides information on the tension that can be weighed on the liquidity of the platform.
At the time of writing, Bitcoin is trading around $23,200. Let’s estimate that the majority of cryptocurrency exchanges bought BTC at the midpoint of this range, or $39,500. This means that their jobs are currently short of just over 40%.
That said, solid exchanges have safety liquidity pools and diversify their investments. However, we now know that a BTC over $40,000 Many allow exchanges to have more comfortable liquidity.
If the purchase of Bitcoins, at the stock exchanges, becomes scarce below 30,000 dollars, there are many jobs crystallized at a level, however.
The 20,000 dollars is at the heart of all pressures
If the exchanges barely moved below 30,000 dollars, the level of 20,000 USD nevertheless created a draft on the side of the buyers. In fact, about 350,000 BTC, which were still held, were acquired at this price with exchanges for a total value of 7 billion dollars. This is the single largest entry point for the platforms although the 30,000-49,000 range cumulatively adds up to more jobs.
For individuals, the psychological pivot point of $20,000 is also far from indifferent. We note, in fact, that it was a matter the biggest buying pressure by holders whose addresses have a value of less than $10,000 BTC.
In addition, the largest transfer amount of accommodation for the short-term buyers at the $20,000 level. It is interesting to measure the importance of the support of 20,000 dollars, in this bear market, and although it seems, for now, that BTC has found support there.
It should be noted that we have also observed a strong mobilization of buyers on the psychological levels $30,000 and $40,000. It is still unknown. It is not possible to determine, at this time, what part of the buyers who entered between 40,000 and 50,000 dollars are likely to maintain their positions in the long term. The more important this becomes, the more we can expect a new spring for Bitcoin.