The recent drop in the price of BTC led the main cryptocurrency on the market to close the first quarter of the year in the red. More precisely, from January to March 2022, BTC depreciated by 2%.
Although the result is negative, the largest cryptocurrency on the market managed to close the quarter above $45,000. This price is considered a key level for the cryptocurrency.
“Right now, the $45,000 mark is becoming the new support level for the BTC price. As BTC price moves away from this possible new support, it may try to retake the $48K it briefly surpassed, but with no success in sustaining it,” said analyst Froilan Fernandez.
Likewise, analyst Willy Woo shared several analyzes that point to a bullish outlook for BTC. One of them, that of Grayscale Investments, maintains that the returns of the first cryptocurrency have far surpassed those of gold in the last two years.
In addition, Woo pointed out that the holding in other investment assets has been reduced. Citing a study published by Gallup, the analyst noted that purchases of shares of listed companies rose from 63% in 2004 to 56% in 2021.
Fernandez also pointed out that among the indicators that support the rise in the price of BTC, the accumulation of BTC by small investors stands out, according to a report by Ecoinometrics.
“Especially, the report refers to holders who control addresses with a balance of less than 1 BTC, as well as the group of investors with a balance between 1 BTC and 10 BTC, which are the ones that show the greatest growth in their holdings”, he said.
According to Fernandez, the data shows an increase in BTC in the hands of these two segments of holders, which occurred after October 1, 2020.
“The value held by holders who control between 0.1 BTC and 1 BTC shows a trend of sustained growth over time that exceeds 10%,” he said.
According to him, small investors are more likely to buy BTC and hold, which whales do. This movement could cause a supply shock and help the price to continue higher.