- For the first time in April, the RSI bar went to 100, thanks to first-time Bitcoin buyers, who drove the market out of FOMO
- Even though prices remain high, demand for BTC keeps increasing as new buyers continue to invest.
- The increase in first-time Bitcoin buyers could cause a rise in its volatility, price, and market adoption.
A recent data by Glassnode, a prominent blockchain analytics platform, has revealed that something is happening in the supply of Bitcoin, as first-time buyers are actively investing in the cryptocurrency. This new capital that has flooded into cryptocurrency is bringing a rise to positive investor sentiment.
Source: Glassnode
According to Glassnode’s Supply Mapping tool, the first-time buyers RSI stayed above 50 in the entire month of April, peaked at 100 last week. Strong and sustained demand pressure, such as this, tends to be a precursor to price rises.
The fact is that these first time buyers are even buying at these prices, essentially signaling that they believe Bitcoin in the future will soar even higher.
New Buyers Drive Bitcoin Supply Pressure at Higher Prices
This trend of new buyers flocking towards Bitcoin is also represented in the chart using a heatmap of cumulative supply RSI by cohort. The chart also showed that Bitcoin’s supply RSI hit the maximum level of 100 and is still significantly on the high level.
This implies that many people are turning to this market out of fear of missing out on any major upside movement. The notable thing about these new investors is that even though BTC price is always rising and falling, they remain active in purchasing the coin.
This means they are willing to pay extra for the token, thus putting pressure on the available supply. According to experts, such a trend can shape the whole crypto market to some extent.
Whether the influx of capital leads to a lasting bull market or simply short-term fluctuations for Bitcoin is yet to be seen. BTC’s price is currently at $93,556 after gaining 3.1% in the last day, according to CoinMarketCap data. Its trading volume is also up almost 18% within the same period.
Source: CoinMarketCap