The largest crypto, Bitcoin continued countering the pressure of selling. The leading crypto faces heavy outflows or liquidating yet managed to stay afloat over the level of $22k. It is mainly because of the undeterred HODLing behavior of whales along with buying the dip at one discounted price. If you want to trade with a trusted platform, then you can go for https://bitiq.org.
The current market scenario
Dominant buyers of Bitcoin maintained one holding spree irrespective of the situation of the market now. A crypto analyst shared such development. Two cohorts saw a sharp hike in their pattern of holding. Regardless of the price fall of Bitcoin, whales with over 10k Bitcoin accumulated or purchased the dip. More than 1k Bitcoin holders even following some sideways stints until May spiked up. The behavior may mean that this group sold their tokens or bought once more and became 10k whales.
The 10k ones saw more fast growth. The total number of whales as a whole increased in the market now. The smaller one drew the same picture. For example, the total addresses holding more than 0.01 Bitcoin reached an all-time-price high of around 10,543,548. Thus accumulation from Bitcoin whales can take us to a positive result for the crypto price.
At press time, Bitcoin witnessed a subtle rise as it was trading at more than the mark of $22.7k. The sentiment was more optimistic because the token’s demand increased too. Two vital aspects or maybe indicators can support such a scenario. Firstly transaction fees of Bitcoin that remained elevated since the sell-off of LUNA. It suggested one uptick in demand for block areas.
A higher fees regime where the 7-DMA is much higher than that of the 180-DMA. Historically it is a sign of market recovery. Here DMA means the day moving average. The Lightning network capacity of Bitcoin in public channels keeps on pushing to new highs, even following the prevailing bear market headwind.
At present, the Lightning network public channel capacity is standing at 4290 Bitcoin. It increased by 34.6 percent since the market peak in last year November. Here a layer 2 payment protocol layered on Bitcoin’s top refers to Lightning Network. It has the intention of enabling quick transactions among participating nodes. It got proposed as a solution to the scalability problem of Bitcoin.
Is there any better opportunity?
Cryptos such as Bitcoin are exponentially rising in value. Crypto investors will benefit by having a backup plan and thinking regarding what to do with their crypto earnings. A wise investor is aware that he should not hold on to crypto for a long time at a big correction risk wiping out all gains.
Investment is mainly regarding finding the correct opportunities at the correct time. If an individual finds something better than what he has now invested in, it may be a great time to take his crypto profits. He must ask himself if he is ready to let go of his current investment in rechanneling favor it towards anything else. Yet he must remember the profit amount you will lose by opting for option one and leaving option two that including the cost of opportunity.
It may also offer insight into another characteristic that makes crypto risky to employ in transactions of real-world such as volatility. Consider that one will be relinquishing his present potential crypto profits and ask himself if he is willing to take such a risk.
It is for investors with many investments too. If they decide that they will rather have the time and money they spent on crypto investment in another new or current opportunity they need to understand or check out the advantages and disadvantages as well.
Conclusion
It is always a great idea to have a strong plan of what one will be doing following a huge crypto win. It may be tempting to spend money on any luxury purchase that may be justified to some extent. Yet it is vital to remember that such assets will depreciate with time. Rather than spending all earnings on any depreciating asset, consider to reinvest your crypto earnings in some other business or investment opportunities. After you score a big cryptocurrency win, with some planning and foresight you will be able to take the profits and reinvest them to witness a more huge return in the coming days.
