Buy the Dip : Top Reason Why This is the Best Time To Accumulate Bitcoin

The post Buy the Dip : Top Reason Why This is the Best Time To Accumulate Bitcoin appeared first on Coinpedia - Fintech & Cryptocurreny News Media| Crypto Guide

The cryptocurrency market has finally recovered some of its losses after days of negative price movement. Today’s cryptocurrency prices were mixed, with Bitcoin remaining above the $31,000 barrier. Bitcoin’s price has risen above $31,000 for the second time and it even broke above the $32,000 resistance on a few occasions, but the bears held off any advances beyond $32,200.

Despite the slight improvement, the market remains in a state of great dread, and sentiment appears to be much worse than yesterday, as it currently stands at 10 points. At the time of writing, BTC is trading at $31,683.

Bitcoin’s “Cyclic bottom”

Ki Young Ju, CEO of on-chain insights platform CryptoQuant, says that one statistic indicates Bitcoin (BTC) is nearing the end of its “cyclic bottom.” According to CryptoQuant, unspent transaction output (UTXO) age bands are a set of all active supplies that were last transferred within a particular age band, and they track long-term and short-term holders’ trading behavior.

“Now UTXOs over six months old take 62% of the realized cap. In the 2020 March great sell-off, this indicator reached 62% as well.”

The on-chain statistic, according to Ju, indicates that Bitcoin is “coming close to a cycle bottom.” Institutions that bought Bitcoin in 2020 have generally left their BTC stacks inactive, according to the CryptoQuant CEO.

“For most cases, the same amount of BTC is still in the (custodian) wallets, which flowed out from Coinbase for highly likely institutional purchases in December 2020. Their entry price is $23,000.”

The fact that Bitcoin is in an accumulation phase is “pretty obvious,” says Ju. According to him, the institutions that fueled the 2021 bull market also invested in this $25,000-30,000 bracket. Retail investors are exiting the crypto market, but institutional investors continue to accumulate.