A majority of investors with large Bitcoin holdings are buying the dip instead of selling, according to new data from Coinbase.
Crypto researcher Larry Cermak highlighted the data on Twitter, which is available via Coinbase’s new trading signals initiative.
Interestingly, according to Coinbase's data, 67% of customers with large BTC holdings (top 10%) are buying rather than selling in the last 24 hours. pic.twitter.com/mOfNMbscuc
— Larry Cermak (@lawmaster) August 15, 2019
The signals, launched last month, are designed to offer fresh insight on trading activity and how Coinbase users are reacting to the markets.
The “top holder activity” signal analyzes the biggest holders of a given crypto asset on Coinbase, revealing how many users in the group have bought or sold their positions in the last 24 hours.
Coinbase is also showing average hold times, which is the median number of days an asset stays in a Coinbase customer’s account before it’s sold or sent to another address or wallet. A new popularity signal shows how many customers hold each cryptocurrency.
The last signal is a price correlation metric designed to give traders a look at whether the prices of certain crypto assets are correlated with one another.
Meanwhile, the crypto Fear & Greed Index, a measure of how fearful or confident Bitcoin traders might be, has recently dropped.
On Wednesday, the index fell to a 245-day low last seen when Bitcoin plummeted to around $3,200 in mid-December 2018.
The index ranges from 0 to 100, with the bottom suggesting that there’s “extreme fear” in the crypto market, which signals that the market could be nearing a bottom. The top suggests that investors are “greedy” indicating the crypto market could be overbought.
[the_ad id="42537"] [the_ad id="42536"]
