Investors are optimistic Bitcoin price will keep growing, however, retail investor selloff shows otherwise.
By Godfrey Benjamin
Edited by Julia Sakovich
Updated
3 mins read
Bitcoin (BTC) retail investors have initiated a total transfer of 6,000 BTC BTC $83 264 24h volatility: 0.1% Market cap: $1.65 T Vol. 24h: $36.22 B to Binance this January.
Blockchain analytics platform CryptoQuant reported that these small-scale BTC holders are reeling in funds this year. Unlike this group, Bitcoin whales have held off on major selling, suggesting their willingness to wait for the real bull market gains to hit.
Judging by Bitcoin exchange inflows, retail investors seem to think that the bull market is over, at least for now. The 6,000 BTC moved to Binance is currently valued at approximately $625 million. Bitcoin traded at $104,350.17, following a 0.85% dip in 24 hours.
Whales’ BTC sales are still at a minimum compared to retail investors. Their inflows to Binance this month come in around 1,000 BTC, equivalent to $104 million. This reflects modest profit-taking and the smart money moves of Bitcoin whales. Speaking of the market situation, CryptoQuant contributor Darkfost wrote in a “Quicktake” update:
“We often hear about a contradiction in the behavior of investors categorized as whales and retail.”
He went further to say this marks the exact state of the market based on the analysis of the data from Binance.
“This is a perfect example of the contrasting behaviors between whales and retail traders, and it is often considered a better choice to follow whales rather than retail investors,” Darkfost noted.
There is a reset in mainstream interest in Bitcoin, discovered shortly after BTC/USD passed all-time highs (ATHs) in 2024.
This is evident in the Google Trends figures for “Bitcoin”. Analyst CryptoCon applied the Relative Strength Index (RSI) volatility indicator to historical data of Google Trends Data for Bitcoin searches.
In his analysis, he noted that “we can see when people start to get interested and use that to determine where we are in the cycle”.
CryptoCon highlighted five crucial phases in retail investors’ interest in the flagship cryptocurrency. Once the market sees a major price surge, interest starts to grow. As soon as investors are satisfied, they begin to get bored, and just at that time, interest drops. In his opinion, this usually happens before a major ATH.
From the market outlook, the just concluded phase is phase 3, the ATH move. CryptoCon thinks the RSI has made a full reset, which ushers in the next phase 4.
The coin has failed to rebound towards its ATH of over $109,000 in the last few days. Instead, it has hit a key resistance level at $104,250 and failed to break through.
Analysts perceive this brief halt towards upward momentum as a momentary consolidation rather than a reversal. Consequently, a number of them expect a new ATH in February.
Crypto analyst Michaël van de Poppe is even more optimistic, hinting that a breakout could happen within the next one to two weeks. This potentially sets the stage for a significant price surge. Several others are looking forward to a rally that could push BTC toward $112,375 and $116,085.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
