Bitcoin is flat for some time now, although yesterday, the world’s leading digital currency did make a move of just over 1% to make it to $9,250, we haven't gone anywhere.
For the past two months now, Bitcoin has been trading in a narrow range between $8,500 and $10,000, the longest BTC has gone without any substantial movement this year.
“It's still unclear if it's headed toward support around the 200-day moving average or if it's gonna look for a fresh breakout above $10,000,” wrote analyst Mati Greenspan in his daily newsletter.
The 14-day Relative Strength Index (RSI), which measures the persistence and magnitude of price movement, is currently at 48.5, a neutral point.
“If it breaks above its trend line, it’s going to get some nice momentum,” said Matt Maley, chief market strategist at Miller Tabak + Co.
Millennials to Pull Bitcoin Out of the Rut
Market analysts are betting on bored millennials who are stuck at home with the internet and monetary stimulus at their disposal. These retail traders who use Robinhood have been investing in the stock market, pumping the stock prices of bankrupt companies.
Now, according to Maley, the same cohort can generate frenzy if bitcoin climbs past to 2020 high of $10,400.
“They’re playing in another sandbox right now, but they’re keeping their eyes on all the other sandboxes because they know that something like Bitcoin can make them a big profit very quickly,” Maley told Bloomberg. If BTC reaches a new high of the year, “interest in that is going to pick right back up, and all those momentum players are going to say, ‘I’m in.’”
As we reported despite the lackluster June, bitcoin printed 42% gains in this quarter and is still up 25.70% YTD.
Benn Eifert, the managing partner of QVR Advisors, actually sees a lot of overlap between these small-time Robinhood players piling into shares of bankrupt companies, and those who were involved in crypto in 2017.
“It’s a social media-like dynamic,” he said. “Someone points out a stock that’s moving and posts some charts; an influencer says, ‘Ok we’re buying it, buy the calls’ and then many people pile in.”
As per a recent report, millennials (Gen-X) and Boomers have been doubling their bitcoin investments since February.
Another study reported that “there is a true intrinsic belief in retail holding Bitcoin for the long-haul,” and retail could potentially account for eating up more than 50% of physical supply in 2024.