The price of Bitcoin fell below the psychological threshold of $30K, scaring investors. It was preceded by the loss of the dollar peg by UST's stablecoin and the Luna crash. 

In this context, more predictions are being made about Bitcoin's demise and the collapse of the entire cryptocurrency market. But let's not make an already grim situation worse. At this point, everyone needs to remain cool-headed.

It used to be that price swings for Bitcoin and other cryptocurrencies didn't discourage HODLers from hanging on to them. Is this changing? It seems so. 

The extreme fear on the market is evidently causing small holders to panic and sell off their holdings.

Chart

Source: Alternative.me

However, whales seem to be quietly buying the dip, with a surge in their activity starting in early February 2022 and steadily staying around that level. The number of wallets holding more than 1,000 BTC reached 2,224 on May 18, 2022.

Chart

Source: Lookintobitcoin.com 

Detailing things a bit more, here's a screenshot of the activity for the richest Bitcoin address that doesn't belong to the exchange 1P5ZEDWTKTFGxQjZphgWPQUpe554WKDfHQ that I investigated in my previous articles. It appears to be accumulating the flagship crypto, not getting rid of it. On May 7, 2022 it bought a sizable chunk of 1,000 BTC when it was worth around $36K and then on May 14, it piled up more 553 BTC when the flagship crypto traded at around $30K. 

Chart

Source:  Bitinfocharts.com

It is important to view technical analysis along with fundamental analysis, as technical analysis alone cannot be relied on. But here's what it says: 

Below is the Realized HODL Ratio chart which analyzes the ratio between RHODL bands of 1 week versus RHODL bands of 1-2 years and can identify with high accuracy each price high of Bitcoin's previous macro cycles.

The RHODL Ratio has the ability to predict Bitcoin's pullback when the line enters the upper red band, and it can also predict its rally after spending time within the lower green band. As it stands, the line is heading towards the lower green band, meaning that the price of BTC may start to rally after spending some time there as it has historically done throughout its entire existence. 

Chart

Source: Lookintobitcoin.com

The current economic climate is very different from the past, with the global economy on the verge of collapse. Bitcoin is still considered a risky asset, weighted by the same factors as stocks. As long as it has both a huge technology potential and a store of value, it has a strong chance of decoupling itself from traditional assets. Basically, it's not the same as traditional assets; the public just needs to change their perception of it. I do believe this will happen and we will soon see Bitcoin’s incredible growth.

This article has been prepared by ChangeNOW for information purposes only. Any opinions, news, research, analyses, prices, charts, or other information contained herein are provided as general market information and do not constitute investment advice. ChangeNOW assumes no responsibilities for errors, inaccuracies, or omissions in this article, nor shall it be liable for damages arising out of any person's reliance upon this information. ChangeNOW.io is under no obligation to update or keep current the information herein. Past performance is not indicative of future results.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC’s Q3 close and what to expect in Q4?

Bitcoin Weekly Forecast: BTC’s Q3 close and what to expect in Q4?

Bitcoin price is trading above two crucial levels, suggesting a stable foothold. Combining this outlook with a bullish divergence signal, BTC holders should expect a favorable outcome. However, since the third quarter will end in a few hours, there is bound to be abnormal volatility in the market, which could trigger massive moves in either direction, so investors need to be cautious. 

More Bitcoin news

Shiba Inu price: Shiba Eternity download day the biggest bullish catalyst in SHIB history?

Shiba Inu price: Shiba Eternity download day the biggest bullish catalyst in SHIB history?

Shytoshi Kusama, the project lead for Shiba Inu, has dropped a teaser about Shiba Eternity for the SHIB community. Proponents expect the launch of the collectible card game to be a bullish catalyst for SHIB.

More Shiba Inu News

Staking is coming to Chainlink this December as LINK price stands firm

Staking is coming to Chainlink this December as LINK price stands firm

LINK is trying to find its feet in the wake of declines that followed its rejection from resistance at $8.40. Bulls have managed to sustain a generally up-trending market and Chainlink is up nearly 17.50% from its September low at $6.56.

More Chainlink News

Ethereum Classic bulls take charge, a retest of $30 on the cards

Ethereum Classic bulls take charge, a retest of $30 on the cards

Ethereum Classic price ranges with no directional bias in sight. This trend could continue unless Bitcoin decides to do something. Regardless, investors should prepare for a minor downtrend before ETC rallies. 

More Ethereum Classic news

Bitcoin: BTC’s Q3 close and what to expect in Q4?

Bitcoin: BTC’s Q3 close and what to expect in Q4?

Bitcoin price has developed a bullish divergence with RSI, hinting at more upside. Despite the optimistic technicals, investors should expect volatile swings before the end of the third quarter of 2022. 

Read full analysis

BTC

ETH

XRP