The Bitcoin Reserve risk indicator is at an all-time low: long-term investors (hodlers) are increasingly losing confidence. At the same time, a Hollywood-ready crypto crime drama is taking place in the USA.
Should you wait for the bottom at the most popular cryptocurrency? The ”reserve risk” indicator warns of new price falls. At least this would be the case if it were up to the HODLers – they have never been so pessimistic about the digital gold of the future.
Bitcoin price on the ground: what about investor confidence?
The reserve risk indicator measures the confidence of hodlers in relation to the current price. The most important factor is the number of days an asset has been held up to the time it sells it.
A picture of studio.glassnode.com
What is surprising is that the orange bottom line has not been so close to the bottom since 2015. Even during the 2018 bear market, this remained far above the current values and once again confirms the crypto winter. Never before have Hodlers had so little confidence in a rapid recovery of the courses.
Other indicators confirm that confidence in crypto has reached the low. The Relative Strength Index, also called RSI, indicates an imminent low point in the price. On a scale between 0 and 100, the indicator measures whether an asset is undervalued or overvalued and is well suited for predicting trend reversal points.
In the weekly chart, the RSI for digital gold now moved to the value of 30 – which indicates a strong undervaluation. In the 13 years of Bitcoin’s history, this has only happened three times. However, with the price increase of the last few days, the RSI was able to leave the zone again.
When is the right time to buy?
The price has been moving steadily between the $ 18 and $ 22,000 mark in recent weeks and is unlikely to recover so quickly due to interest rate policy worldwide. With the ECB and the FED, the two most important banks in the world have announced a continuous increase in key interest rates until the end of the year.
Meanwhile, the BTC Fear & Greed Index is in the “Extreme Fear” range – and has been for 71 days! In fact, this period has never been reached before, even though the bear market was more devastating in its percentage scale in 2018. The number 1 crypto lost a whole 85 percent within a year. In view of this fact, investors were extremely afraid for only 32 days.
The positive thing about this: all these values signal a clear bottom formation, which offer optimal entry opportunities for investors with cash reserves. Even the operators of the Fear & Greed Index describe “Extreme Fear” as a sign that investors are too indecisive and therefore there is a buying opportunity.
New movie with Bitcoin as supporting actor planned on Netflix
The amateur rapper Heather Morgan, who described herself as ”The crocodile of Wall Street”, is involved in a money laundering process around 120,000 BTC. According to them, she and her husband Ilya Lichtenstein are said to have helped to wash BTC from the Bitfinex hack in 2016. On TikTok, the rapper had caused a sensation under the name Razzlekhan.
Although the two could now face up to 20 years in prison, Morgan is allowed to pursue a job, according to the latest court order. Since there is no immediate danger of her leaving the USA, she was allowed out on bail. While the investigation is in full swing, a US court has now granted her permission to “pursue a job with a salary of over $ 10,000 a month”.
This was probably enough for Netflix to announce a documentary about what happened. Known from “Tiger King” and “FYRE” among others, Chris Smith is to direct.
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