Source: Digital Money Times, originally published on .
Chart for BTC/USD (1W)
Bitcoin (BTC) hodlers have held on to their horses during the bear trend. They have refused to give in to market pressure. In fact, most hodlers are holding at more than 70% losses. However, they have no intention of selling as they believe the price will eventually go up. In any market, there are different types of investors with different approaches. Hodling is also an approach and a very effective one. However, not all investors become hodlers for the same reason. This means that most of them do not necessarily have a plan. So, they are currently hodling because they do not want to sell at a loss. However, what are they going to do as the market starts to recover? To analyze this, let us discover the types of Bitcoin (BTC) hodlers.
Break Even Hodlers
These are hodlers who have been so annoyed by the bear trend that they do not want anything to do with cryptocurrencies. They just want Bitcoin (BTC) to reach close to the price they bought at, so they can sell and break even. Most such hodlers are those who entered the market exactly around $ 17,000 or higher. They did not see the market cycles of 2015 or 2016. To them, the gains are not worth the wait. So, they will break even, take their money and go somewhere else. Some of them may even buy again later at higher prices to make the same mistake again.
Break even hodlers see Bitcoin (BTC) in terms of dollar value. In other words, they are investing in Bitcoin (BTC) but they consider fiat as the standard. Thus, they will be better off just breaking even and getting out of this market. The cryptocurrency market has seen a boom of financial awareness. There are Youtubers making videos about cryptocurrencies and technical analysis. There are tons of articles published about Bitcoin (BTC) and other cryptocurrencies every day. In short, people have learnt in this bear trend what traditional investors like me would master in years. If despite of all this awareness they want to just breakeven and get out, then they are not cut out for this.
Chart for BTC/USD (1M)
Early and Late Selling Hodlers
These are hodlers who will either sell too early or too late. Most of them comprise of people who have seen market cycles before the previous one. So, they will have different price points in mind where they would want o sell. However, selling too early or too late will be a pressure in itself. Imagine an investor getting out at $ 25,000 only to see Bitcoin (BTC) climbing to $ 50,000 soon afterwards. Similarly, imagine an investor who refuses to sell at $ 70,000 only to see Bitcoin (BTC) falling back to $ 50,000 soon afterwards. These events will happen. The question is, how are hodlers going to cope with it? Are they going to let it influence their emotions or will they consider it as part of the game?
Forever Hodling Hodlers
These are the type of hodlers who are not prepared to sell, come what may. There are plenty of them. In fact, recent reports from popular research firms show that a large number of wallets with high balances belong to people who have not made any outgoing transactions in years! They are unmoved by the price of Bitcoin (BTC) in dollars. To them, Bitcoin (BTC) is the standard. They have not made any outgoing transactions but they have been accumulating more at the bottom.
The post Bitcoin (BTC): How Will Hodlers Cope With Bullish Pressure? appeared first on Crypto Daily™.
The post Bitcoin (BTC): How Will Hodlers Cope With Bullish Pressure? appeared first on Digital Money Times.