Despite the fall from its historic high, above $64,000, recorded in April, the price of bitcoin remains above an important indicator for the long term, in what experts point to be a reflection of the optimism of investors with the largest cryptocurrency in the world .
Prices ranged between $46,350 and $46,453 in the past 24 hours, according to Coindesk data. The cryptocurrency continues with an accumulated increase of 57% in the year and is on its way to return to the range registered on April 14, when it reached 64,829 dollars.
“After a quiet month of July, we’ve seen returns from retail investors,” said Caroline Bowler, CEO of Australian cryptocurrency broker BTC Markets. “The market draws a line between the retreat of Chinese bitcoin miners and the recentralization of activity in the US and Europe.”
Indeed, blockchain analysis by data company Kaiko suggests that cryptoactive activities have migrated from China to the United States and Europe as the communist state continues to enforce laws against cryptocurrency mining in the country.
The 200-day moving average appears to be holding prices above the $45,117 range, according to data from brokerage Bitstamp. Price action is considered bullish above the red line on the chart and bearish below, as per technical market theory.
“Although July was a calmer month, we experienced significantly more accounts trading in excess of a million dollars a month,” said Bowler.
Data from data provider Glassnode shows that the total amount of bitcoin held by entities with a balance of 0.1 to 1 BTC – that is, small investors – has continued to rise along with the price of bitcoin, suggesting that retailers are buying more, in the same way as institutional investors.
Bitcoin is not the only cryptocurrency that has seen an increase in the number of trades for the month of August. “Ether and other assets represent the majority of transaction volume, not bitcoin,” said Daniel Kim, head of capital markets at Maple Finance. “This shows that individuals and institutions are feeling much more comfortable holding other cryptocurrencies, and are no longer ‘diversifying’ their wallets by simply holding bitcoin.”
Other notable top 20 altcoins by market capitalization have also seen their prices rise in the past 24 hours. Cardan (ADA), XRP, binance coin, polygon (MATIC) and stellar (XLM) obtained the most significant gains.
Text translated and republished with permission from Coindesk