New Bitcoin Report: Sentiment Has Turned ‘Hopeful’ And Heavy Accumulation Is In Effect
It Can Be A Good Time To Start Purchasing Bitcoin Report Shows
According to a recent report released by Adamant Capital, this could be a good time to start purchasing Bitcoin (BTC) before a bull run. The co-authors of the report, Tuur Demeester and Michiel Lescrauwaet, explained that Bitcoin is now 75% below its all-time high and that the current bear market represents a good opportunity for investors to enter the space.
Is This The Best Time To Buy Bitcoin?
Adamant Capital believes that the market is in a current phase of accumulation in which the price of Bitcoin is expected to trade between $3,000 and $6,500. The report mentions that the market capitulated when investors left the space in November and Bitcoin dropped over 45%.
They explained that the Bitcoin Unrealized Profit/Loss (BUPL) indicator, that aims to estimate how much BTC holders¡ are profiting or losing, is $13 billion in the positive side. After being adjusted for the number of lost coins, the BUPL indicator shows 3% of unrealized losses.
As Adamant Capital explains, this indicator is showing that the market is moving away from the capitulation phase and are moving towards “hope/fear.”
There are large investors that are purchasing big sums of BTC in order to be prepared for a future price increase. Moreover, Adamant’s partners believe that due to the “disposition effect,” Bitcoin is being accumulated.
Accumulation is currently happening and this is due to the fact that the bottom might just be in. Thus, investors are trying to get as many BTC as possible before the price of the digital asset starts growing once again.
According to the Twitter user Whale Alert, 110,030 BTCs from separate wallet addresses were moved to different wallets. Although these transactions could be made by exchanges, there is a larger activity in the market as well. In the last months, trading volume has been growing after 2018, when trading volumes fell sharply.
Moreover, Bitcoin’s fundamentals remain strong. The Lightning Network (LN) continues to grow, which is very positive for the future of Bitcoin in which it will need to process a larger number of transactions. At the same time, Bitcoin transactions reached 400,000 a few days ago. This is the largest number of transactions registered by the Bitcoin network since the bull run in 2017 and at the beginning of 2018.
Currently, each Bitcoin can be purchased for $5,300 and it has a market capitalization of almost $94 billion.