3 reasons why Bitcoins ATH now looks more bullish than in April 2021
3 reasons why Bitcoins ATH now looks more bullish than in April 2021
There were a few wild months for Bitcoin's price. It rose from around $ 65,000 in April to less than $ 30,000 in July and again to a new all -time high today - October 20th.
Many make comparisons between market dynamics in April and now, and since BTC is in pricing, it is worth looking at a few reasons from which things could currently be much more buller than before.
retail fomo is not here
The most important thing first, one of the main catalysts for parabolic progress of the BTC price have always been swarms of retailers who stormed in the last hour to buy Bitcoin.
This is commonly referred to as "Retail Fomo" and we saw it in 2017 and in April this year - data from Google Trends support it:
The above graphic of the past five years shows that the search for cryptocurrency in December 2017, when Bitcoin reached its peak at around 20,000, reached an all -time high. They also started to rise in April this year-as BTC marks its new all-time high just under $ 65,000.
Now there are no real signs that private investors are on the market. This means that we have by no means approached the actual FOMO values, which many believe that there is still a lot of upward potential.
The market is not over -indebted
A possibility to compare how over-indebted the market was in April compared to today, is to take a look at the SOPR quota of the long-term owners, which shows when they distributed coins.
The above graphic shows that LTH took profits with an average 8-fold leverage in April, and now they are doing this with an average 3-fold leverage-a considerable reduction.
Another way to measure this is the total value of the liquidated positions.
Back on April 18, Kryptok potato reported that the entire market capitalization has lost around $ 360 billion within hours and the price of Bitcoin collapsed by $ 9,000. This led to a historical liquidation event in which both long and short positions worth over $ 10 billion were deleted from the market.
Similar things happened in September in the middle of the new wave of China Fud, as Btc dropped from $ 52,000 to $ 42,000. However, the liquidations were by no means at the level of April.
In April we were used to seeing liquidations worth several billion dollars every day, since both bulls and bears were over -indebted - which could also have been derived from the very high financing rates.
Now on the day when Bitcoin broke through his all-time high and has gone through massive volatility in the last 24 hours, there are only liquidations worth around $ 300 million.
This also means that the possibility of a larger squeeze is considerably lower because fewer dealers use leverage.
strong basics
It is true that Bitcoin's fundamental data have generally strengthened throughout 2021, but the rally in April was driven by an event that may not be as important as many - Tesla's engagement on the market.
Now the matter is particularly different, institutional investors continue to flock to the industry. Not only that, we have just seen the des permission The very first futures-supported BTC ETF in the USA ticked Bito.
It is one of the hottest products on Wall Street, which is one day on sale, generates a volume in billions in billions and transported over half a billion dollars of assets.
es ETFs like the voo for an order of magnitude in relation to the trading volume.
This has significantly legitimized the market and opened the door for more traditional investors because it offers a regulated product that you can use.
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