2 November 2024
Why It Is A Perfect Time To Buy Bitcoin
From the past 4 days, bitcoin has come close to $16,000. Many think that the price is done and won’t push up, it's not true, and a metric that considers the mean exchange inflow has lit up the “buy” signal.
The CEO of Crypto Quant, Ki Young Ju, tweeted,
The tweet does look positive and good, now let's have a look at this “buy-signal”.
As per the tweet author, there are two reasons why exchange inflows would spike
1. In the bull market, if inflow spikes, it would be to sell bitcoin holdings at the local high. If retail investors are active on exchanges, there will be sell orders.
2. In contrast, bear market inflows state that whales would want to secure their holds in anticipation of a sell-off.
According to Ki Young Ju, the first is the reason given is happening as the retail buyers aren’t done buying bitcoins and there is proof for the same:
Square is selling bitcoin faster to customers than bitcoins are being minted and the same is the trend is to opt by Paypal. As per the CME CoT report, the retail demand was at an ATH and is long bitcoin.
So when the question asked whether it's the right time to buy bitcoin? The answer is Yes. If you are looking for a long-term investment it's a great time to buy bitcoin for yourself. But you are aiming for the short term, wait for the pushback up to $13,500.
The price of bitcoin feels like the start of a bull run or perhaps the pre-bull run. Companies are booming, fundamentals of bitcoin are strong, and miners are happy. Therefore, buying bitcoin now for a long term hodl would be a good decision.
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