Bitcoin Retail Volume Close To Growing Again: Bullish Sign?
On-chain data shows the demand for using Bitcoin is now neutral from retail investors and could be heading toward a reversal to the upside. Bitcoin Retail Volume No Longer Plummeting As explained by an analyst in a CryptoQuant Quicktake post, the demand among the retail investors may be close to growing again. The on-chain indicator of relevance here is the “Retail Investor Demand,” which measures, as its name suggests, the demand for the Bitcoin network that’s present among the smallest of entities. Since these investors have such small wallets, their transactions tend to be of a small size as well. Thus, the Retail Investor Demand makes use of the collective transaction volume of the small transfers (less than $10,000 in value) to track the activity of this cohort. Now, here is the chart shared by the quant that shows the trend in the 30-day percentage change of the Bitocin Retail Investor Demand over the last few years: The value of the metric seems to have been approaching the neutral level in recent days | Source: CryptoQuantAs displayed in the above graph, the 30-day change in the Bitcoin Retail Investor Demand plunged to a significant negative level earlier in the year, meaning the volume related to small investors was down a large percentage over a 30-day period. Since this low, though, the metric has been climbing back up and its value is today at almost the 0% mark, implying its drawdown has just about finished. If the same trajectory continues, it’s possible that the indicator should break into the positive territory, which would imply growth in interest from the retail investors. From the chart, it’s visible that the last time the Retail Investor Demand saw a break into the green zone was just before last year’s rally beyond $100,000. Back then, the volume from these investors had kept rising until hitting a peak of about +30%, which had interestingly nearly coincided with last year’s price top. It may be no surprise that the asset’s consolidation followed when growth in the volume related to this group disappeared and a decline in activity took over. Back during the 2021 bull run, the Retail Investor Demand saw a plummet into the negative territory similar to the one witnessed earlier in this year. The indicator then reversed its value in spectacular fashion as it broke past the 0% mark with a sharp surge and kept rising until a notable green level. This turnaround in retail investor coincided with the start of the second half of the 2021 rally. It now remains to be seen whether retail volume will make a similar comeback this time as well, potentially implying a reignition of bullish momentum for Bitcoin, or if it would take a while more to recover. BTC Price Bitcoin has continued its recent trend of consolidation during the past day as its price is still trading around the $96,300 level. The price of the coin appears to have been following a flat trajectory recently | Source: BTCUSDT on TradingViewFeatured image from Dall-E, CryptoQuant.com, chart from TradingView.com Keshav Verma Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021. Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to. In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions. Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true. Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment.. Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form. Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new. As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money. Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs. Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body. Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.