Bitcoin’s price rise over the $100K mark has resulted in a heightened demand from retail investors. According to a new Gassnode report, Retail investors continue to have a significant demand for Bitcoin at prices around $100,000.
The report argues that last month, the Shrimp-Crab cohort consumed 1.9 times the newly generated supply of Bitcoin or a total of +25.6k BTC.
Shrimps are an indicator of grassroots involvement in the Bitcoin market, representing individual investors with less than one Bitcoin. Retail investors with 1–10 BTC holdings are considered Crabs and are frequently thought to as knowledgeable, long-term holders.
Will Retail Demand For Bitcoin Continue in Future?
The price of Bitcoin is expected to rise in the coming future, or so is expected by market participants and many analysts.
Previously, Glassnode data indicated that the current Bitcoin cycle is still repeating historical trends, particularly those from 2015 to 2018.
Bitcoin had marked a 562% increase between the 2015 and 2018 cycle. If this trend persists, Bitcoin prices may rise sharply in the same direction.
If this optimistic scenario plays well, likely, retail interest in the cryptocurrency, especially Bitcoin will also increase.
Why is Bitcoin Down Right Now?
Ever since the inauguration ceremony of US President Donald Trump took place, Bitcoin’s price has struggled to pick pace. At the press time, it is trading down nearly 3%.
On Tuesday, January 21st, Bitcoin fell more than 5% as the excitement around the inauguration of the Trump administration subsided. Cryptocurrency investors have hailed Trump’s inauguration as a watershed moment for the industry.
Consequently, the market’s investor sentiment has been tempered by the absence of any encouraging signals, which has caused Bitcoin to decline.
What Do Bitcoin’s Market Parameters Indicate?
Keeping aise the current fall in price, the overall sentiment for Bitcoin is bullish.
Bitcoin’s Fear & Greed Index is currently at 75 (Greed). Over the previous 30 days, Bitcoin saw 3.85% price volatility and 17/30 (57%) green days.
With 28 technical analysis indicators indicating optimistic signals and three indicating bearish signals, the overall sentiment for the price prognosis of Bitcoin is bullish.
If the optimism continues, Bitcoin’s 200-day SMA is expected to rise over the course of the next month, reaching $83,047. In the same tone, the short-term 50-day SMA for Bitcoin is predicted to reach $108,673 by February 22, 2025.
One well-liked indicator for determining if a cryptocurrency is overbought (above 70) or oversold (below 30) is the Relative Strength Index (RSI) momentum wave. With the RSI rating at 60.20 right now, the Bitcoin market is in a neutral state.
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