Bitcoin erases 2021 gains as BTC price falls to 'biggest bid ever' on Binance
Bitcoin (BTC) breaking below $30,000 has cost it almost all of its 2021 bull run gains — but a historic silver lining is ready to rescue bulls.
Data from exchange Binance's orderbook confirms that BTC/USD has almost dipped to the strongest support zone ever seen.
BTC price arrives at "biggest bid ever"
It's been a rough 24 hours for Bitcoin hodlers, and the rout seems not to be over yet. After losing 6% overnight, BTC/USD hit lows of $29,300 — just $300 below where it opened at the start of the year.
With that, despite reaching lofty highs of $64,500 just three months ago, Bitcoin is de facto back where it started before the most intense phase of its latest bull run kicked in.
Those who fear that all is lost — at least for the short term — may be happy to discover that that same level currently hosts the biggest Bitcoin "bid" ever seen.
As revealed by the creator of Twitter-based monitoring resource Material Indicators on July 20, BTC/USD is now being propped up by unprecedented demand.
"We just hit the largest bid ever," the account summarized.
"Would take some massive FUD to break it. So, I think upside is more likely."
The idea of Bitcoin breaking below current levels is nevertheless far from fantasy for traders, with predictions of $24,000 or even a $14,000 "Armageddon scenario" circulating online.
Additional orderbook data from Binance shows relatively little resistance between spot price and $35,000, something which could make a rebound easier to engineer.
At press time, Bitcoin circled $29,700 as comparative stability returned to the market.
"Parabolic" smaller hodlers feast
Meanwhile, the latest figures covering investor activity on Bitcoin has produced some surprising results.
As noted by statistician Willy Woo on Tuesday, it is now the smaller hodlers who are amassing BTC, even as the largest whales divest themselves of their holdings.
"Wee little fishies are going parabolic," he commented Tuesday.
"This is the ratio of supply held by holders of 0-10 BTC vs 100+ BTC (Dolphins to Humpback Whales). PS. Little guys hold 32% of what the big guys hold, and that does even not include their loot on exchanges or ETFs."
The practice makes 2021 look more akin to 2013 than 2017 in terms of post-halving bull run years, a common narrative in recent weeks.Source