Is the bear market over in Bitcoin? Could it be a good sign that small investors are bored with Bitcoin?
Bitcoin, which fell to $ 17600 after its peak of $ 69,000, has been moving in a narrow band for a long time. Bitcoin trading around the $20,000 levels for the past 4 months has become tedious, as retail investors have lost interest. Speaking to CNBC about Bitcoin’s sideways trend, Luno exchange head Vijay Ayyar said that this consolidation is a potential bottom signal.
“Bitcoin has been holding between $18,000 and $25,000 for 4 months. This consolidation marks a potential bottom pattern as we see the dollar index approaching its top as well.”
Stating that the model between Bitcoin and DXY is similar to 2015, Ayyar said, “We can see a similar pattern emerge.”
While some analysts are cautious, thinking that the real bottom will not come before a final capitulation candle is seen in Bitcoin, some analysts believe that the rise will begin after this consolidation. Speaking on this subject, Ayyar stated that the boredom of retail investors is a good sign and an indication that smart money is flowing here.
“The stagnation in prices marks an accumulation phase where institutional investors become more willing to bet on Bitcoin. Being stuck in a certain range makes it boring. However, this is a period when retail investors lose interest and smart money begins to accumulate.”