Why it is worth buying Bitcoin at a price below $60,000
Many members of the cryptocurrency community begin to think that Bitcoin loses its "heat" when its price constantly changes from 59,000 to 60,000 dollars.
Many traders now agree that at $59 980 on Binance, Bitcoin recorded a support level of $59,000. Holding this position leaves a chance for a second rise of the main digital currency on the market above the $60,000 mark. Some expect this very “take-off” this Wednesday.
According to analytical firms, Bitcoin reserves in the spot market are moving downward and are in regular demand. Trader Josh Ragner emphasised that massive consolidation reminds him more of a re-accumulation of funds in cryptocurrencies. According to him, the current dynamics of the price of Bitcoin is primarily due to institutions, in contrast to the bullish rally in 2017. In addition, he noted that despite the decline in the popularity of the request for "Bitcoin" in Internet search engines, the market volume of trading on American Coinbase has increased significantly since the third and fourth quarters of last year.
The only thing Ragner sincerely regrets is the downward trend in the number of retail investors. The trader is convinced that, of course, one cannot do without Bitcoin price correlations. He suggested that the 4-year cycle of the value of the main cryptocurrency in the market could “break”.
Other analyst, William Clemente, announced that two significant factors affect the price of Bitcoin:
- Capitalisation over 1 trillion
- The number of Bitcoins on the exchange
Clemente also pointed on the close relationship between miners and holders. Recently, all the major analytical bureaus have noticed a tendency for “cryptocurrency miners” to accumulate their wealth rather than convert it.
According to Clemente, this factor, in addition to the bullish rally, makes withdrawing funds from cryptocurrency exchanges less and less feasible. This means that a new wave of large institutions will most likely be actively fighting for 2.3 million Bitcoins stored on the largest exchanges
The article has an informational character, reflects the opinion of the author. Before you make a decision, analyze the market situation.