Bitcoin has achieved a new yearly high of approximately 110,510 USD, marking a technical breakout. Despite this, the count of small investor addresses holding less than 1 BTC has plummeted from 590,000 in 2021 to merely 260,000 today, highlighting a retreat of retail investors.
The current rally is primarily fueled by large investors and long-term holders. While Bitcoin has cleared the critical resistance zone between 105,000 USD and 110,000 USD, the lack of retail enthusiasm poses a risk to the rally’s endurance.
Bitcoin’s RSI indicates overbought territory, potentially triggering a cooldown. Additionally, the NVT ratio suggests an overvaluation of Bitcoin’s market cap compared to its transaction volume, underscoring the necessity for retail activity to support continued growth.
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