Number Of BTC Millionaires Crossed The 20,000 Mark: Analysis

The number of BTC millionaires just crossed the 20,000 mark and analysts say that this is not a good sign so we find out why in our bitcoin latest news.

According to the data from Glassnode, the number of BTC millionaires surpassed 20,000 as Albeit the figure shows that many investors are profitable because of Bitcoin’s rally that could also show a sign of a top. Glassnode analysts wrote:

 “The number of #Bitcoin millionaire addresses (addresses holding ≥ $1M worth of $BTC) crossed 20,000. It is the highest value since January 2018.”

Over the past 20 days, the price of Bitcoin increased by around 31% and it outperformed both gold and the US Stock market. when the price of Bitcoin increases so fast in a short period, the crypto market often becomes vulnerable to a pullback. There’s a huge number of investors that are holding onto the high unrealized profits but the high time frame technical structure of BTC remains highly optimistic which represents a risk that investors could take profit.

Cole Garner, the on-chain analyst hinted that there’s a hell handle that could come soon but with previous bull cycles after a major BTC run-up, the major cryptocurrency saw huge shrot-term corrections. Over the past 24horus, Bitcoin increased by 6% despite the growing expectations of a minor pullback. Garner said:

“Dynamic RSI on the daily. Hell candle has followed pretty much every DRSI overbought signal that prints > 75 since the beginning of the last bull market. Though a leg up sometimes happen first, as it did today.”

While the expectations of the market pullback are high, there is one variable. In the past, bull market during the 2017 craze, the futures market accounted for a larger portion of the market volume. This time however, because of the declines incurred by BitMEX and the overall drop in futures activity that was related to the previoys cycles, the spot market is leading the rally. Whether investors in the spot market will be compelled to sell at $13,875 it remains to be seen. On the weekly charts, the same level acted as a strong resistance for sellers over the past three years.

But the counter-argument is that there is a little resistance above the $13,000 all the way to the all-time high of $20,000. There’s a strong chance that the retail and institutional investors will continue to bid above the said level expecting a new run up to record highs.