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Bitcoins crash to $ 8,000 was caused by Trader – analysis

Bitcoin has not been sleeping lately. Since last Sunday the price of the cryptocurrency is around has sunk and left many traders perplexed, which in the world could have sent the digital asset into the basement.

Cynics of the Bitcoin market suggest that the rally is on 14. 000 and the subsequent dump was “a last pump and dump” operated by whales. Gold fan Peter Schiff, for example, claims that the movement is a precursor to a rise in price to 4000$ or even lower. However, data shows that it’s not these whales that cause Bitcoin’s recent volatility – it’s the short-term traders who are likely to make quick profits.

Bitcoin drop led by traders

Coinmetrics recently published a chart on Twitter showing the “change in bitcoin count by price at the time of the last on-chain move” for the 20. to 29. September persecuted.

The startup for industry analyzes found out: During the recent price crash, “Bitcoin activities that moved last time were between 13.000 and 20. 000 $ lay “- meaning that the surrender is” completed “in red. There were other optimistic signs. Two, to be exact.

Firstly, strong sales of Bitcoin last in the range of $10.000 to $12.000, suggesting that the sell-off was a by-product of “short-term traders with weak long-term conviction.”

And second, there was little profit taking from long-term investors below 8.000.

The cryptanalysis company Glassnode confirms this analysis. They found that the average age of moving coins in recent days “between 20-30 does not deviate significantly “.

According to #onchain metrics, #Bitcoin’s recent drop to $8k doesn’t seem to have been caused by long term holders.

The average age of moved coins is between 20-30 days & CDD hasn’t deviated significantly.

This was likely due to short term $BTC holders.https://t.co/GyiQGuZUJY pic.twitter.com/cjix8bOiBM

— glassnode (@glassnode) September 27, 2019

These data may be interpreted as an indication that “[Preisverfall] is likely due to short-term holders,” which is partly evidenced by the massive volumes of BitMEX and other pre-rated exchanges during this decline.

The accumulation game

Short-term traders may have run away, but HODLers have kept their arms firmly clasped. According to an analysis of the Twitter account “BitcoinEconomics.io”, the accumulation is for addresses that are referred to as “companies”, “retail investors” and “large investors”, even during the recent fluctuations in the steady upward trend. According to BitcoinEconomics, this is a sign that the “prospects for Bitcoin look good.”

The outlook for Bitcoin looks great:

Steady retail adoption. Companies and big holders accumulating more. 45% retired hodlers inbetween that do not accumulate anymore but only sold 5%.

Note the extreme 500k BTC pump and dump from April to August 2019. pic.twitter.com/CTbg43qQHn

— BitcoinEconomics.io (@BitcoinEcon) October 1, 2019

What all of these investors seem to be waiting for is Bitcoin’s next block-reward reduction – known as a “halving event” or “halving.” You know that in May 762618456 BTC’s output (inflation) will be halved by the Bitcoin protocol. Analysts say that this event, which amounts to a negative supply shock, will help BTC reach new heights.

Because of this upside potential, or at least the hype, it is assumed that investors are stacking Satoshis in anticipation of a rise in price (“stack sats” as they affectionately call the game of Bitcoin accumulation). Whether or not this positive development will bear fruit remains to be seen. However, many seem to insist.