Bitcoin’s (BTC) decline to $25,000 or below is unlikely, according to new research, thanks not to speculative traders but to investors who believe the price will break records again.
Popular analyst Root, dated April 19 in your posts He argued that there was really no reason for Bitcoin to experience a massive drop.
No reason to fall
Bitcoin failed to arouse interest in the market with the record price levels it reached in the current halving cycle, causing some investors to lose faith.
On the other hand, on-chain indicators offer a much more positive outlook compared to spot price action. Investors who are still in the market support the idea that the BTC/USD pair will reach much higher levels in the future.
Root stated that the reason for this was the shortage of short-term investors (STH) in the market. Even in November, when 69 thousand dollars were seen, there were relatively few speculators in the market. This contrasts sharply with the peaks of the previous halving cycle in December 2017.
Moreover, the market is currently supported by long-term investors (LTH) who anticipate a price increase, not short-term investors who want to “buy the bottom”.
Root said, “The growth of HODL Army allows us to see new record highs (peak of $69k) when there is very little STH on the market.
“Since we didn’t reach the expected $100,000 level, many still hold onto their cryptocurrencies thinking that this will eventually happen.”
Therefore, it seems unlikely that Bitcoin will regress to its current price of around $25,000 (the average of the levels where all coins were last moved) as LTHs are reluctant to sell.