Bitcoin: What Levels Are Mobilizing Buyers?

Bitcoin, what levels are mobilizing buyers? The analysis of Bitcoin blockchain data is instructive. Thanks to this, different profiles of buyers are observable. The entry levels of buyers wishing to position themselves for the long term differ significantly from short-term investors. In addition, certain key levels particularly crystallize attention. Explanations.

Short-term holders skittish as they approach $50,000

Thanks to the data of transactions operated on the Bitcoin blockchain, accessible to all, it is possible to analyze the behavior of buyers. The graphical distribution of Unspent Transaction Output (UTXO) levels provides insight into investor activity based on the price of BTC.

With regard to short-term purchases, it is interesting to observe that they are mainly made between 17,000 and 48,000 dollars. A position is considered short-term in this data when it is held for less than 155 days.

We can therefore conclude that the purely speculative purchase of Bitcoin tends to become scarce at the level of 50,000 dollars. It is therefore a level to defend for long-term investors.

The holders present massively up to 60,000 dollars

As for long-term Bitcoin holders, it should be noted that these remain mobilized to buy up to $60,000. We also observe that beyond this level, the buying pressure decreases drastically.

In addition, a category of so-called mature Bitcoin holders stands out. The latter now constitute the largest share of long-term investors who are still holders. They are characterized by taking a position below $18,000. 

These buyers, having invested before the end of November 2020 represent the largest segment of Bitcoin holders today. 

On the other hand, it should be noted that the largest share of current holders (11.5%) positioned themselves on BTC around $17,000.
Whether investing for the long term or buying speculatively, a price range concentrates buyers. 

We note, in fact, that the buying pressure intensifies, on both sides, between 17,000 and 24,000 dollars, absorbing most of the demand.

On what levels are trading platforms mobilized?

On the side of the exchanges, it may be surprising to observe that they invest, in Bitcoin, mainly between 30,000 and 49,000 dollars. This information is not without importance. It provides information on the tension that can weigh on the liquidity of the platforms.

At the time of writing, Bitcoin is trading around $23,200. Let's estimate that a majority of cryptocurrency exchanges bought BTC at the midpoint of this range, or $39,500. This means that their positions are currently in deficit by just over 40%.

That said, solid exchanges have pools of safety liquidity and diversify their investments. Nevertheless, we now know that a BTC above 40,000 dollars allows many exchanges to have more comfortable liquidity.

If the purchases of Bitcoins, by the exchanges, are scarce below 30,000 dollars, a level has however crystallized many positions.

The 20,000 dollars at the heart of all the pressures

If the exchanges were little mobilized below 30,000 dollars, the level of 20,000 USD nevertheless created a draft on the side of the buyers. Indeed, around 350,000 BTC, still held, were acquired at this price by exchanges for a total value of $7 billion. 

This is the largest single entry point for the platforms although cumulatively the 30,000-49,000 range adds up to more positions.

As for individuals, the psychological pivot point of $20,000 is also far from indifferent. We observe, in fact, that it has been the subject of the greatest buying pressure among holders whose addresses have less than 10,000 dollars of BTC.

Moreover, the largest transfer volume from holders to short-term buyers is at the $20,000 level. It is interesting to take the measure of the importance of the support of 20,000 dollars, in this bear market, while the BTC seems, at present, to have found support there.

Note that we also observe a strong mobilization of buyers on the psychological levels of 30,000 and 40,000 dollars. An unknown remains.

It is impossible to determine, for the moment, which part of the buyers entered between 40,000 and 50,000 dollars are likely to maintain their positions over the long term. 

The more this will be important, the more it is possible to hope for a new spring for Bitcoin.