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Following the events on September 7, the majority of the market’s cryptos recovered fast and returned to their prior price levels. Except for Bitcoin, most.
Now, there is some resistance on the price charts, which is why the king coin has yet to reach $52k. The greater concern, however, is this: What about the investors? Because they undoubtedly suffered big losses during the downturn.
Was this what prompted them to sell, and if so, how is the sluggish recovery influencing investor behaviour?
Bitcoin investors remain bullish
While selling was prevalent on the day of the crash, the market is currently witnessing purchasing as the dominant pattern. At the time of publication, Bitcoin appeared to be battling to break through the $47k barrier. However, this has not demotivated investors, who have become substantially more positive than previously.
Its repercussions can also be seen in the market, as the exchange balance has dropped to its lowest level in three years.
At the same time, currency withdrawals reached their greatest level in a month. Almost the previous week, over 2,500 BTCs have been removed from exchanges.
The social trend of “buying the dip” played a significant role in this. This trend primarily pushed investors to enter the market, as social tools observing this term reached a four-month high. In reality, at the time of writing, the indicator had returned to its May levels.
Was buying the right decision?
It was, in fact, the correct decision. This turned out to be a wise decision for them. After falling into losses yesterday, the market has returned to profit. There were those who sold at a loss, but there were also those who bought at a discount and are now profiting.
Furthermore, the Price DAA Divergence identified this as a strong buy signal as it reached its monthly low. As the price fell and the number of active addresses increased, it was the ideal opportunity to buy BTC off the market.
Furthermore, most of the addresses are still in profit. The 4 million addresses that accounted for the 10% drop (the ones who faced most losses) are also slowly moving back into profits.
Thus, put simply, Bitcoin investors remain undeterred.