Mike McGlone, chief trading officer at Bloomberg Intelligence, believes that bitcoin (BTC) is more likely to rise to $ 40,000 than to fall to $ 20,000. Traders seem to share this optimistic view when Bitcoin began a strong recovery today.
Cross-chain data also show that long-term holders (LTH) are accumulating bitcoins again after making profits during the rally from $ 10,000 to $ 64,000.
The total amount of bitcoins these perennial owners are 2.3 million more than they had at the height of the 2017 bull run. This shows that experienced traders remain optimistic about Bitcoin’s future prospects.
Daily indicators for the cryptocurrency market. Source: Coin360
CoinShares’ weekly digital real estate flight report released on Monday showed that institutional investors withdrew $ 141 million from Bitcoin investment products last week. However, net inflows have been seen in Ether (ETH), XRP and Cardano (ADA) products, indicating a withdrawal of funds from Bitcoin and the introduction of specific altcoins.
However, the outflow of Bitcoin products is negligible compared to the $ 4.2 billion that flowed into it in 2021. This shows that the majority of investors have maintained their positions despite the recent fall.
Let’s analyze charts of the top 10 cryptocurrencies to determine if the correction is over or if prices may fall further.