The post Big Gains For Bitcoin in April! Weak Hands Indicate BTC Price To BreakOut Soon appeared first on Coinpedia – Fintech & Cryptocurreny News Media| Crypto Guide
In the second half of March, Bitcoin had enjoyed a sharp bull rally, but with the recent drop, it felt that the March rally was seeing an end. However, after a week-long downfall, Bitcoin price has seen a ray of hope with the currency slightly gaining back its bull rally.
At the time of writing, Bitcoin is trading at $46,575 with an increase of 1.47% over the last 24hrs.
Analyst Points Gains Amidst Pull Off
As per a Twitter commentator @0xCryptoChan the ratio between the unmoved Bitcoins on the chain and the total Bitcoin circulation is around record lows. This ratio is called paper hands or weak hands indicator which shows the level of retail interest in the market and this retail interest is currently at record lows of below 25%.
However, the ratio positioning at 25% has always given rise to bitcoin’s rally. Between late 2019 to 2021 when the ratio was at 25%, Bitcoin price had jumped 11.3 times. From early 2016 to 2018 Bitcoin had surged 59.6 times.
Hence, if the current ratio of paper hand or weak hands indicator breaks above 25%, Bitcoin could see a rally.
Also Read : Bitcoin Bull Run In Progress – BTC Price May Hit This Level In Next 12-Months!
Paper hands are nothing but where the retail investors are usually hesitant over trading because of their limited liquidity. These kinds of traders often enter last during a bull run or during the exit market. Though Bitcoin saw a bull rally during March, April could be an entry time for retail traders who enter for the next bull run.
Senior financial analyst at FxPro, Alex Kuptsikevich states that, “Without significant news in the cryptocurrency sector, BTC is again working as an indicator of global demand for risky assets. However, it will be possible to speak with confidence about the local victory of the bulls only after BTCUSD fixes above the 200-day moving average, which is now passing near $48300.”
This weak paper hands ratio also points out that large trading houses often give rise to large Bitcoin volumes.