Bitcoin’s break through the $ 50,000 mark is the most anticipated time this month as a rebound from then on will be the only sign that a positive rally will take place in 2022. Trader investments are still somewhat cautious, however, as a rally is yet to be announced.
Bitcoin back to $ 50,000
News of Senator Lummis’ intention to come up with a new comprehensive bill next year containing a summary of the taxation and classification of digital assets became clear yesterday.
When the price rose 5%, BTC eventually regained the critical support level of $ 50,000. Interestingly, for the first time in a while, the event sparked optimism among investors.
Bitcoin price action | Source: TradingView – AMBCrypto
The drop in prices over the past few days has created an atmosphere of concern, but after yesterday investor sentiment turned positive for the first time in 9 days.
Bitcoin Investor Psychology | The source: mood
Coincidentally, a price increase of 9% in the past 3 days also caused the network to generate relatively higher profits than it did over 2 weeks ago.
This was a relief for 7.77 million Bitcoin investors who fell victim to subsequent losses due to December’s 18.26 percent drop in prices (Introduction to the Bitcoin Price Promotion).
Bitcoin investors are losing money | Source: Intotheblock – AMBCrypto
If Bitcoin continues to move higher, it will only serve as a reward for the resilience of long-term owners and large wallet investors as they will not lose ground for months regardless of November events.
HODLing is still alive
This is confirmed by the steadily declining vibrancy, which suggests that LTHs are not liquidating their positions but are simply accumulating in HODL.
Second, the range of large wallets includes BTC from 100-1k, which is hitting an all-time high. The 3.85 million BTC they hold are valued at over $ 196.2 billion, which is nearly 18% of the total BTC supply.
Bitcoin supply is held by 100-1 thousand BTC holders | Source: Glassnode – AMBCrypto
While it looks like the market is bouncing back in the direction of greed, the Fear and Greed Index shows it is still closer to fear sentiment, so don’t expect any radical moves from investors or the market.
Fear and greed index | Source: alternative
Therefore, while reclaiming $ 50,000 is a big deal, investors can wait a while and watch as the uptrend has only just begun and how long it can last.