Bitcoin may have crashed 50% in a single day in March, but that hasn’t stopped traders from investing in the cryptocurrency. Indeed, multiple data sources suggest that despite the uncertainty in the global economy, the majority of investors are starting to top up their BTC positions.
Bitcoin investors buy quickly
According to screenshots from a UK-based crypto exchange shared by retailer Nik Patel, many users of these platforms are long on Bitcoin. In fact, IG.com signals that 78% of customer accounts have a long position. https://twitter.com/cointradernik/status/1246452723253477376
Qiao Wang from Messari, a former institutional trader, recently provided the chart below that shows the Bitcoin order book for Coinbase Pro. https://twitter.com/QWQiao/status/1245752205187170304
Although these are not representative of other exchanges, it is clear that more traders are long than short.
Signs of an impending reversal?
While strong buying interest in Bitcoin suggests further upward moves are imminent, this could also be a sign of poor crypto market performance. A well-known statement that is promoted by prominent traders both in traditional markets and in the crypto industry is that it is often right to act against the majority. When you think of the ancient Warren Buffett quote that says:
“[Be] afraid when others are greedy and greedy when others are afraid.”