Data Shows Bitcoin (BTC) May Be in New Deposition Stage

Bitcoin (BTC) dropped nearly 50 percent in one day with one of its biggest sales last week. However, according to Glassnode data, HODLers are now returning.

Analyzing Bitcoin’s data on the blockchain, the firm realized that the “HODLer Net Position Change” model, which helps determine when whales sell and buy BTC, flashes green after the brutal price breakdown. This means that long-term HODLers follow one of the main principles of contract investments: buying more when there is blood on the streets. So this means that long-term traders are accumulating BTC at the bottom and increasing their positions. Recently, CoinMetrics has determined that short-term owners selling at a loss are the main force behind Bloody Thursday.

the #Bitco HODLer Net Position Change has been positive during the recent price dump.

This means long term investors have been accumulating discounted $ BTC and increasing their positions.

Live chart: https://t.co/3dQGl4yZix the pic.twitter.com/yxiwo8w3

– glassnode (@glassnode) March 17, 2020

Stable coins did not experience the inability of Bitcoin to function as a safe haven during the coronavirus pandemic. For example, Tether (USDT) supply increased to $ 5.3 billion. However, according to Bitcoin Core developer Jimmy Song, when investors decide it is the right time to buy from the bottom, all this money will eventually return to Bitcoin. As of now, the market is in wait and see mode.

There’s a lot of new money flowing into stablecoins the past month or so ($ 1B +). Remember that these have to be fully backed, so it’s essentially cash waiting to get into the crypto market. I suspect the vast majority of it is waiting for the #bitco to bottom.

– Jimmy Song (송재준) (@jimmysong) March 18, 2020