In general, while Adler stresses that it is too low to say much about a recovery coming, the interest from the retail segment should be interpreted as a positive signal.
Per his chart derived from CryptoQuant’s data, the dynamics of retail accounts’ interest might be correlated with the potential for price moves.
The local peak of retail demand was registered in mid-Q1, 2024, right after Bitcoin (BTC) touched an all-time high above $73,738 on March 14, 2024.
The analyst also highlighted that the rally of the first crypto will be back as crypto whales are interested in reinvesting their gains:
Yesterday, the Bitcoin (BTC) price plunged below $65,000 and reached mid-May levels. By press time, the largest cryptocurrency is changing hands at $64,262 on major spot exchanges.
He highlighted that, historically, miners with cost-ineffective hardware (outdated ASICs of previous generations) have left the segment after halving events.
As the market matures and the net hashrate of Bitcoin (BTC) surges, this time, the long-anticipated capitulation of miners has lasted longer than previously.
However, the ending of this process (that has already been running for over 60 days) will signal an opportunity for the next phase of the BTC rally.
This article was originally published on U.Today
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