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 crypto exchange Binance’s order book confirms that BTC/USD has almost dipped to the strongest support zone ever seen.
BTC price arrives at “biggest bid ever”
It has been a rough 24 hours for Bitcoin hodlers, and the rout doesn’t seem to be over yet. After losing 6% overnight, BTC/USD hit lows of $29,300 — $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 on July 20 by “Material Scientist,” the creator of monitoring resource Material Indicators, BTC/USD is now being propped up by unprecedented demand.
“We just hit the largest bid ever,” Material Scientist 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 order book data from Binance shows relatively little resistance between the spot price and $35,000, something that could make a rebound easier to engineer.
At the time of publication, Bitcoin circled $29,700 as relative stability returned to the market.
“Parabolic” smaller hodlers feast
Meanwhile, the latest figures covering investor activity around Bitcoin have produced some surprising results.
As noted by statistician Willy Woo on July 20, it is now the smaller hodlers who are amassing BTC, even as the largest whales divest themselves of their holdings.
Related: Rothschild Investment Corp has increased its Bitcoin exposure by 300% since April
“Wee little fishies are going parabolic,” he commented.
“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.”
This makes 2021 look more akin to 2013 than 2017 in terms of post-halving bull run years, a common narrative in recent weeks.