While the Bitcoin market has been testing the confidence of the investors, given the prolonged bear phase alongside other factors fueling the low-price rally, investors have continued to instill their trust in the cryptocurrency.
As per data from Glassnode, a blockchain data and intelligence provider that generates innovative on-chain metrics and tools, the number of Bitcoin holders has reached its peak value.
Glassnode’s graph suggests that the number of Bitcoin holders with holdings between 0.1 and 10 surpassed its historical values and touched the new peak. The number of wallets holding more than 0.1 Bitcoin has touched the 4.07 million mark, whereas wallets holding more than 1 Bitcoin but less than ten have reached 952,754.
Recent blockchain data also suggested that investors preferred accumulating Bitcoin at its lows.
Opening his views on the recent data and the current market scenario, renowned Bitcoin analyst Willy Woo said that the bottom of the largest cryptocurrency market is close. Woo derived his opinions from the Max Pain theory, which states that an option’s price will gravitate towards a max pain price, in some cases equal to the strike price for an option, that causes the maximum number of options to expire worthlessly.
The max pain price here is the strike price with the most open contract puts and calls and the price at which the stock would cause financial losses for the most significant number of option holders at expiration. Thus, the theory of Bitcoin’s relevance suggests that its price would touch the bottom of the cycle when 58%-61% of all tokens are in losses.
Currently, Bitcoin is trading at $16,151.10, a 1.64% drop from the previous day and about a 2.71% drop over the past five days. However, as an aftermath of the alleged collapse of FTX, the asset has become more volatile. Its dominance over other cryptocurrencies has also fallen to 39.82%, close to its all time lows.
The industry participants are hoping the price levels will maintain this level and not plunge to any lower like $12,000, given the overall dominance of bearish sentiment. JP Morgan had predicted that the prices could drop to $13,000 levels, however, Todayq News reported that some experts anticipate that it may even touch $10,000 levels.