Last Updated on
There has been lots of chatter between traders and chartists on what is going to happen to the crypto industry overall – will Bitcoin break $5500 or will it dip to $4800? How will it affect crypto assets that are showing more signs of independence from the big daddy of the cryptocurrency world? There are others who have taken a breath and looked at the situation as a whole. One of these industry participants is Adamant Capital, a cryptocurrency fund that has published a report on Bitcoin that gives a lot of reasons to be bullish in your online trading endeavors.
Bulls rejoice as Adamant partners hail Bitcoin bottoming
Partners of the crypto fund all agree that Bitcoin has bottomed out. These are not your average trader. However, they are industry veterans who have been through multiple sell-offs, not just the crash of early 2018.
The partners and researchers at Adamant Capital all agree on one thing – hope is the keyword for the Bitcoin market right now. They use the Bitcoin Unrealized Profit/Loss (BUPL) indicator to show their thought process. This indicator shows how much Bitcoin holders are profiting or losing cumulatively. That figure stands at $13 billion profit, but there is a catch. Once lost coins are figured into this total and the figure is adjusted it stands at $3 billion lost. The key here is that it is an unrealized loss.
While some might not pay too much attention to this indicator, Adamant has found that these recent movements all but confirm that Bitocin has come out of its capitulation phase. What stage is it currently in? Hope. That is why the keyword for the partners is hope.
One thing that needs to be remembered is that during the bull rush of 2014 to 2016 had the same exit from capitulation at the same time as this BUPL.
It’s the whales that are doing it
The reason for this is the whales. The largest investors in the market who are currently loading up on Bitcoin and are in it for the long haul. The disposition effect, explains Adamant, shows that investors have shown that they hodl assets that have collapsed. Which is exactly why these large investors are holding, it’s a hangover from the price dropping to close to $3000 at the end of 2018.
The fund keeps a Hodler chart that tracks how many coins have gone into known hodler wallets, and it shows that over 100 000 coins have moved to hodlers in the last two months (those months being February and March). Adamant says it believes these investors are stuffing their bags for the long haul.
The only reason for this mass collecting is because a large enough number of hodlers have decided that Bitcoin has finally bottomed and are getting into the action before the price skyrockets with another bull rush. Low volatility has helped these whales collect as much as possible before the market goes into a full bull rush. The volatility for the last 6 months has only been around 5%, a level that has not been seen in the crypto markets since 2016.
Short-term bear Murad Mahmudov says that these periods of low volatility have been followed by immense Bitcoin increases and rallies. This can only mean one thing for the average investor… now is the time to buy Bitcoin (BTC).